A firm has production function q = 100 L + KL− L^2 − K^2 The price of the good is $1. The wage is $10, and the price of capital is $30. Assume that the firm is a price - taker in a perfectly competitive market.

a. What will the firm’s profit maximizing choice of capital and labor be?

b. Suppose that the firm’s capital is fixed in the short-run and wage rises to $20. What is the firm’s new profit maximizing choice of labor?

c. In the long-run wages are still $20. What is the firm’s new choice of labor and capital?

d. Did labor fall more in the short-run or long-run? Explain why.

Current operating income for Bay Area Cycles Co. is $32,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $128,000.

Required:

1. Calculate Bay Area Cycle’s per unit variable expense and contribution margin. How many units are currently being sold?

2. How many additional unit sales would be necessary to achieve operating income of $80,000?

Ben buys a 180-day $100 000 bank bill, 30 days after issue, for a price of $98 140.70 (the purchase yield is 4.61% p.a.). After holding the bill for 30 days Ben sells it at a yield of 4.56% p.a. (simple interest).

a. Construct a Cash flow diagram from Ben's perspective

b. Find the sale price.

c. Find Ben's simple interest yield p.a. (as a percentage, rounded to 2 decimal places) over the 30-day holding period.

d. Explain how Ben's yield calculated in b. would change (increase or decrease) if the sale yield was less than 4.56% p.a. Why would the yield change in this way?

e. When a bank bill is purchased and sold before maturity the dollar return consists of two components—a capital component and an interest component. State how to calculate the capital component.

f. Explain in your own words and with reference to the purchase yield and the sale yield when the capital component will be a gain and when it will be a loss.

g. Use your explanation in (f.) to determine whether the capital component of Ben's bank bill investment will be a gain or a loss. Note that you are not required to calculate the actual value of the capital component.

Consider price quotes and characteristics for two different bonds:

At the same time, you observe the spot rates for the next three years:

Demonstrate whether the price for either of these bonds is consistent with the quoted spot rates. Under these conditions, recommend whether Bond A or Bond B appears to be the better purchase. Do not round intermediate calculations. Round your answers to the nearest cent.

The non-arbitrage price of Bond A: $____

The non-arbitrage price of Bond B: $____

____ appears to be the better purchase.

The table provides the prices of 5 zero-coupon bonds:

Determine the value of the annual effective forward rate applicable from time 2 to time 3.

A. 12.3%

B. 11.9%

C. 23.7%

D. 19.2%

E. 17.8%

In a perfectly competitive market, each of the 10 consumers in in the market has demand characterized by P(q)=MWTP(q)=100 - 5.7*q. If 100 units are transacted, what is the market price?

Chapter 25

An 83-year-old woman has been experiencing progressive memory loss over the past 6 years. She knows who her husband and daughter are, but she often forgets who her son-in-law and grandchildren are. Her symptoms began with forgetting small items, such as names, dates, and telephone numbers. A few years later, she started misplacing things and accusing her grandchildren of stealing them even when they had not been over in weeks. She also believes her family is whispering about her behind her back and purposely speaking too low for her to hear them, which has really upset her. Over the past 6 months, her functional status has declined. She needs assistance with dressing, toileting, and transferring in and out of the bathtub. She has been known to leave the kitchen burners on, has great trouble finding the words she wants to use, and tends to frequently wander off in the neighborhood. These issues immensely frustrate her and her family. Her husband has scheduled an appointment with their health care provider to discuss options in caring for his wife.

While obtaining the health history, the husband tells the gerontological nurse that it is a relief to have someone other than himself care for his wife; he is simply physically and mentally exhausted from caring for her at home. He says that they have a daughter, but he does not want to ask her for help because she has her own family to raise and care for. He further mentions that he cannot afford institutional care for his wife.

1. An appropriate nursing diagnosis for the client’s husband is

A.   anxiety, related to financial insecurity.

B.   social isolation, related to unrelieved caregiving responsibilities.

C.   caregiver role strain, related to limited resources for caregiving.

D.   ineffective individual coping, related to perceived powerlessness.

2. Caregiving activities occupy much of an older adult’s time, either as the caregiver or as the recipient of care.

A.   True

B.   False

3. What is cognitive impairment?

4. Describe the three Ds of cognitive impairment and identify the differences in the cognitive and behavioral characteristics of each.
5. Describe the gerontological nurse’s role in caring for persons with Parkinson’s disease (PD).

Since your first birthday, your grandparents have been depositing $100 into a savings account every month. The account pays 9% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to ________.

Select one:

$32,181

$64,362

$53,635

$75,089