Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors to both internal and external customers. The company's X-ray Division uses semiconductors as a component in its final product and is evaluating whether to purchase them from the Semiconductor Division or from an external supplier. The market price for semiconductors is $100 per 100 semiconductors. Dave Bryant is the controller of the X-ray Division, and Howard Hillman is the controller of the Semiconductor Division. The following conversation took place between Dave and Howard:

Dave: I hear you are having problems selling semiconductors out of your division. Maybe I can help.

Howard: You've got that right. We're producing and selling at about 90% of our capacity to outsiders. Last year we were selling 100% of capacity. Would it be possible for your division to pick up some of the excess capacity? After all, we are part of the same company.

Dave: What kind of price can you give me?

Howard: Well, you know as well as I that we are under strict profit responsibility in our divisions, so I would expect to get the market price, $100 for 100 semiconductors.

Dave: I'm not so sure we can swing that. I was expecting a price break from a "sister" division.

Howard: Hey, I can only take this "sister" stuff so far. If I give you a price break, our profits will fall from last year's levels. I don't think I could explain that. I'm sorry, but I must remain firm -- market price. After all, it's only fair -- that's what you would have to pay from an external supplier.

Dave: Fair or not, I think we'll pass. Sorry, we couldn't have helped.

Instructions

Is Dave behaving unethically by trying to force the Semiconductor Division into a price break? Comment on Howard's reactions.

Note: Use citations when necessary.

Mark has $100 to spend on food (F) and clothing (C). His preferences can be described by the utility function U(F,C) = F0.5C0.5. The price of food is $5, and the price of clothing is $5. The substitution effect of an increase of the price of food to $10 is

Question 7 options:

Python

#Note: use print() to add spaces between items and when needed in the receipt
#(e.g. between user entries and between the entries and the receipt)

#1 Ask the user for a number using the prompt: NUMBER?
# Convert the user entered number to an integer
# Calculate the square of the number and display the result on screen with the following text before it: Your number squared is

#2 Ask the user for a first number using the prompt: first number?
# Ask the user for a second number using the prompt: second number?
# Convert the two numbers to integers
# Multiply the first number by the second number and display the result on screen with the following text before it: Result:
"""
#3 Develop a simple food receipt
a. Ask the user for inputs about two food items using the following prompts in turn. Do not forget to assign each user
entry to a unique variable name:
Item1 name?
Item1 price?
Item1 quantity?
  
Item2 name?
Item2 price?
Item2 quantity?
  
b. Convert the price and quantity variables to integers
c. Calculate the total cost for the order by calculating each item's total price by
multiplying price and quantity for each item and then adding up the total prices for the two items
d. Display the results using the format:
RECEIPT
You ordered: [item1 name] and [item2 name]
Total cost: $ [total price for both items calculated in 3c above]

"""
#Start your code below

"""
Enhance your simple food receipt
a. Ask the user for inputs about two food items using the following prompts in turn. Do not forget to assign each user
entry to a unique variable name:
First item name?
First item price?
First item quantity?
  
Second item name?
Second item price?
Second item quantity?
  
Third item name?
Third item price?
Third item quantity?
  
b. Convert the price and quantity variables to integers
c. Calculate the total cost for the order by calculating each item's total price by
multiplying price and quantity for each item and then adding up the total prices for the three items
d. Calculate the total cost plus tax for the order by multiplying the total cose calculated in c by the tax rate of .09
then adding the tax to the total cost
e. Display the results using the format:
RECEIPT
You ordered: [First item name] [Second item name] [third item name]
Total cost: $ [total price for all items calculated in 3c above]
Total cost plus tax: $ {total cost plus tax calculated in 3d above}

"""
#Start your code below

Python

#Note: use print() to add spaces between items and when needed in the receipt
#(e.g. between user entries and between the entries and the receipt)

#1 Ask the user for a number using the prompt: NUMBER?
# Convert the user entered number to an integer
# Calculate the square of the number and display the result on screen with the following text before it: Your number squared is

#2 Ask the user for a first number using the prompt: first number?
# Ask the user for a second number using the prompt: second number?
# Convert the two numbers to integers
# Multiply the first number by the second number and display the result on screen with the following text before it: Result:
"""
#3 Develop a simple food receipt
a. Ask the user for inputs about two food items using the following prompts in turn. Do not forget to assign each user
entry to a unique variable name:
Item1 name?
Item1 price?
Item1 quantity?
  
Item2 name?
Item2 price?
Item2 quantity?
  
b. Convert the price and quantity variables to integers
c. Calculate the total cost for the order by calculating each item's total price by
multiplying price and quantity for each item and then adding up the total prices for the two items
d. Display the results using the format:
RECEIPT
You ordered: [item1 name] and [item2 name]
Total cost: $ [total price for both items calculated in 3c above]

"""
#Start your code below

Enhance your simple food receipt
a. Ask the user for inputs about two food items using the following prompts in turn. Do not forget to assign each user
entry to a unique variable name:
First item name?
First item price?
First item quantity?
  
Second item name?
Second item price?
Second item quantity?
  
Third item name?
Third item price?
Third item quantity?
  
b. Convert the price and quantity variables to integers
c. Calculate the total cost for the order by calculating each item's total price by
multiplying price and quantity for each item and then adding up the total prices for the three items
d. Calculate the total cost plus tax for the order by multiplying the total cose calculated in c by the tax rate of .09
then adding the tax to the total cost
e. Display the results using the format:
RECEIPT
You ordered: [First item name] [Second item name] [third item name]
Total cost: $ [total price for all items calculated in 3c above]
Total cost plus tax: $ {total cost plus tax calculated in 3d above}

"""
#Start your code below

What role does demand play in the ability to price discriminate? Why? Please respond in at least 100 words

Consider the three stocks in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two-for-one in the last period.

What will the index be in day 2? (Hint: stock split happens in the evening. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Suppose a monopolist faces consumer demand given by

P=300?11Q

with a constant marginal cost of ?$100 per unit? (where marginal cost equals average total cost. assume the firm has no fixed? costs).

If the monopoly can only charge a single? price, then it will earn profits of ?$__. ?(Enter your response rounded as a whole? number.) ?

Correspondingly, consumer surplus is ?$__. ?

However, if the firm were to practice price discrimination such that consumer surplus becomes? profit, then, holding output constant at 100, the monopoly would have profits of ?$__.

Consider a $100 par value 8% bond with semiannual coupons called at $106.50 on any coupon date starting 4 years after issue for the next 2 years, at $102 starting 6 years after issue for the next 2 years, and maturing at $100 at the end of 8 years.

(a) Find the highest price which an investor can pay and still be certain of a yield of 6% convertible semiannually.

(b) Assuming the price paid in part (a), compute the nominal yield convertible semiannually the purchaser would earn if the bond was not called.

Divido Corporation is an all-equity financed firm with a total market value of $100 million. The company holds $10 million in cash equivalents and has $90 million in other assets. There are 1,000,000 shares of Divido common stock outstanding, each with a market price of $100. What would be the impact on Divido's stock price, market value, outstanding shares, and on the wealth of its shareholders?

1. Of the payment of a cash dividend of $10 per share?
2. If the company repurchases 100,000 shares?
3. If the company paid out a 10% stock dividend?

Find the price of 10-year 5% coupon bond if the price of 10-year 7% coupon bond is $107 and 10-year interest rate is 6.5%. All bonds have $100 face value and pay semi-annual coupons.