1. Identify the differences between all four market structures in the short-run and long-run. This will be helpful as many of you may hold management positions and/or become entrepreneurs in the near future. When deciding what type of firm to own or operate, you may find that one market structure may be more advantageous over another based on short-run and long-run costs.  
2. Explain the significance that the average total cost (ATC) curve has on profit and loss based on each type of market structure. Explore how the ATC curve affects all four market structures and identify whether firms will earn a profit or loss based on the placement of the ATC curve and price.

The fallout from the financial crisis of 2008 included an overheated real estate market, fueled by home purchase incentives, poor lending practices, and securitization through high-risk, mortgage-backed securities, which led to a near collapse of global capital markets. As a consequence, many have argued that if the financial institutions had been required to report their loans (and loan-backed investments) at fair value instead of cost, large losses would have been reported earlier. This would have signaled regulators to the problems in the mortgage markets and therefore minimized the losses to U.S. taxpayers.

Explain how reported accounting numbers might affect an individual’s perceptions and actions. Cite two examples.

In 2018, Caterpillar Inc. had about 665 million shares outstanding. Their book value was $37.0 per share, and the market price was $152.80 per share. The company’s balance sheet shows that the company had $28.50 billion of long-term debt, which was currently selling near par value.

a. What was Caterpillar’s book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)

b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)

c. Which measure should you use to calculate the company’s cost of capital?

In 2018, Caterpillar Inc. had about 655 million shares outstanding. Their book value was $30.0 per share, and the market price was $158.30 per share. The company’s balance sheet shows that the company had $17.80 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar’s book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) c. Which measure should you use to calculate the company’s cost of capital?

A cinema knows near a university knows that there are two types of consumers: regular people and students. Ordinary people have an aggregate demand curveof? = 10−p/3 while students have an aggregate demand curve of? = 10–2p/3. The marginal cost of the cinema is zero.

a) Suppose students can be separated from other people by their student id, and the cinema charges each group of consumers a different price. What prices would the cinema charge?

b) Suppose the cinema cannot price discriminate. What would be the market price and quantity sold to each group of customers?

c) How much does the cinema gain from price discrimination?

Please show the process to the solution

In order to buy a new car, you finance $23,000 with no down payment for a term of five years at an APR of 6%. After you have the car for one year, you are in an accident. No one is injured, but the car is totaled. The insurance company says that before the accident, the value of the car had decreased by 25% over the time you owned it, and the company pays you that depreciated amount after subtracting your $500 deductible. How much equity have you built up after one year? Suggestion: Use the following formula for the equity built up after k monthly payments. (Round your answer to the nearest cent.) Equity = Amount borrowed × ((1 + r)k − 1) ((1 + r)t − 1)

The Super-Pop Popcorn Company requires a new popcorn plant in Asia. Management collects data related to each site as follows in the table below. Where the plant should be built?

1. Calculate the weighted factor scores for each site.

2. Choose the best site and explain why.