Your response should be 2-3 paragraphs and incorporate at least one outside reference. You will NOT be able to see others responses until you make the initial posting. You are then encouraged to engage in the discussion as frequently as possible.

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 our excess capacity? After all, we are part of the same company.
Dave:

What kind of price could 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 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.

-------------------

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

Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The production line would be set up in unused space in Shrieves’ main plant. The machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years, and Shrieves has obtained a special tax ruling that places the equipment in the MACRS 3-year class. The machinery is expected to have a salvage value of $25,000 after 4 years of use.

The new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are both expected to increase by 3% per year due to inflation. Further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. The firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%.

(a) Disregard the assumptions in part a. What is Shrieves’ depreciable basis? What are the annual depreciation expenses?

(b) The sales price and cost are both expected to increase by 3% per year due to inflation. Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimating cash flows?

Q1.Two firms produce in a market with demand P=100-Q. The marginal cost for firm 1 is constant and equals 10. The marginal cost of firm 2 is also constant and it equals 25. Firm 1 sets output first. After observing firm 1's output, firm 2 sets its output. (Please pay attention. Read the brackets correctly.)

1a. For firm 2, the best response is R₂(q₁)=(A-q₁)/2. The value for A is?

1b. Solve for the Stackelberg equilibrium. The quantity sold by firm 1 is?

1c. Solve for the Stackelberg equilibrium. The quantity sold by firm 2 is?

1d. Consider the Stackelberg equilibrium you derived in 1b and 1c, (q_1S, q_2S). Consider the two firms' isoprofit curves passing through (q_1S, q_2S). The slope of firm 1's isoprofit curve, (dq₂/dq₁)|π₁ , at (q_1S, q_2S) is equal to?

[By definition, an isoprofit curve for firm 1 collects all pairs of (q₁,q₂) which give firm 1 the same profit level. c.f.: indifference curves for consumers. For example, π₁(10,10)=π₁(20,35)=700. The pairs (10,10) and (20,35) are on the same isoprofit curve. ]

1e. The slope of firm 1's isoprofit curve at the Cournot equilibrium (35,20) is equal to?

1f. Suppose now that entry requires fixed cost F=100. Find the limit output that firm 1 has to produce to deter entry. q_1L=?

1g. Given F=100, the profit maximising output for firm 1 is q_1*=?

2. Which of the following is not a characteristic of a long-run equilibrium for a firm in a monopolistically competitive industry?

Select one:

a. The firm maximises profits.

b. Price will be greater than marginal cost.

c. Average total cost will be minimised.

d. Price will equal to average total cost.

Read the case study below and write an original response. Your response should be a minimum of 500 words in length in order to be eligible for full credit.

John, a 30-year-old male, married and the father of a two-year-old daughter, is diagnosed as brain dead after a motorcycle accident. Mary, his wife, arrives at the hospital and signs the papers for multiple organ procurement and makes one additional request—that her deceased husband’s sperm be obtained and frozen. She intends to arrange for in vitro fertilization using her own ovum and the salvaged sperm from her now deceased husband. She tells the attending chaplain, “I don’t want our daughter growing up alone. Now that she has lost her father it’s all the more important for her to have a sibling.” The surviving widow admits to finding personal comfort in the thought of bearing another child with her deceased husband’s sperm, though she also admits that her husband was reluctant to have another child—a point of some contention between them while he was alive. Finally, she acknowledges that if the vitro fertilization is successful, she prays that God will give her twins.

You are a member of the hospital bioethics committee quickly convened to give guidance to the hospital staff. Are there any reservations on ethical grounds you can envision to this request to harvest the sperm? You will need to consider who has legal possession of the deceased man‘s sperm and whether there are moral or legal limits to his widow’s use of his sperm. You will need to consider the rights of the deceased husband, his now widowed wife, their sole child and the possible additional members of the family, using the basic principles of autonomy, beneficence, non-maleficence, and justice. (You may find it helpful to use the ethics rubric, C.A.R.E., provided by Dr. Winslow in his lecture available in this module as a PDF document, "G. Winslow and discussion: "Close up on Baby Doe and the Aftermath.")

A program written in C that asks for the distance to be entered and then prints the fare

A transportation company has the following rates

1. For the first 100 miles                                                       20 cents a mile
2. For the next 100 miles                                                       a) + 10 cents per mile over 100 miles
3. For the next 100 miles                                                       b) + 8 cents per mile over 200 miles
4. more than 300 miles                                                          c) + 5 cents per mile over 300 miles

Write a program that asks for the distance to be entered and then prints the fare

Check your answers       50 miles should cost    $10
150 miles should cost    $25
300 miles should cost    $38

Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), she buys 100 more shares at $120 per share. At the end of the second year (December 31, Year 2), she buys another 100 shares for $135 per share. The stock pays a dividend of $2.00 per share on December 29th of each year. Acme is trading at $169.80 as of December 31, Year 3. What is the time weighted return for Acme since January 1, Year 1 to today?

a. 21.00%.

b. 21.81%.

c. 23.21%.

d. 25.00%.

Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019.

The cost of each item in the basket and the total cost of the basket are shown for 2017.

Perform these same calculations for 2018 and 2019, and enter the results in the following table.

Suppose the base year for this price index is 2017.

In the last row of the table, calculate and enter the value of the CSPI for the remaining years.

Between 2017 and 2018, the CSPI increased by. Between 2018 and 2019, the CSPI increased by.

Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.

The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2017 do not, but this quality change is hard to measure.

Professors required each student to buy 10 textbooks, regardless of the price.

As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.

A new, safe method of memory enhancement became available for purchase.

The current price of a stock is $84. A one-month call option with a strike price of $87 currently sells for $2.80. An investor who feels that the price of the stock will increase is trying to decide between two strategies that require the same upfront cost: Buying 100 shares or buying 3,000 call options (30 call option contracts). How high does the stock price have to rise for the option strategy to be more profitable?

A. Steel Supply and Demand for USA are given by ;

Demand:P = 1,200 – 100 (QD) and supply: P = 100 (QS) where QD = quantity demanded and QS = quantity supplied

Assume the cross price elasticity of the steel with respect to cars is 2.5. By how much and in what direction the price of the related good has changed if the demand for steel increased by 25%.

What will be the demand curve of steel if the price of autos decreases by 30%?

Illustrate graphically your answer. (I really dont understand how to graph this)

Assume that the government levied a 30% tax on the suppliers of steel. Illustrate graphically the different economics effects of the tax ( and compute the dwl and tax burden)   (I really dont understand how to graph this)

Who is paying more of the tax and why?

Sweet Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $113,000.

(Round answers to 0 decimal places, e.g. $1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)