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Question #1: Suppose that you are the economic advisor to a local government that has to deal with a politically embarrassing surplus that was caused by a price floor that the government recently imposed. Your first suggestion is to get rid of the price floor, but the politicians don’t want to do that. Instead, they present you with the following list of options that they hope will get rid of the surplus while keeping the price floor. Identify each one as either could work or can’t work.

1. Restricting supply.
2. Decreasing demand.
3. Purchasing the surplus at the floor price.

1. Stephanie is planning an office party. She has the following utility function for fruit and cheese:

She has an income equal to $ 50 to spend on cheese and fruit. She prices the fruit and cheese during the first week of October. At this time the price of fruit per pound $ 1 and the price of cheese per pound equals $ 3 .

During the second week of October the price of fruit increased to $ 5 . 25 per pound. If Stephanie purchases the fruit and cheese at this time what is the magnitude of the substitution effect of this price change measured in pounds of fruit? Round your answer to the fourth decimal point.

2. Stephanie is planning an office party. She has the following utility function for fruit and cheese:

She has an income equal to $ 50 to spend on cheese and fruit. She prices the fruit and cheese during the first week of October. At this time the price of fruit per pound $ 1 and the price of cheese per pound equals $ 2 .

During the second week of October the price of fruit increased to $ 6 per pound. If Stephanie purchases the fruit and cheese at this time what is the magnitude of the income effect of this price change measured in pounds of fruit? Round your answer to the fourth decimal point.

Discussion: Your Hypothetical Firm

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Please give us an overview of your firm project.

What is your firm called?

What would it produce? What inputs and capital would you need? What would your fixed costs be and how much would your variable costs be for 100 units? What are your total costs for the first 100 units? How much would you sell your product for? How many years do you think it would take to turn a positive accounting or economic profit?

Estimates are fine. You can be as creative as you wish.

a) Calculate and plot the DTFT of ?[?] = sin( (?/ 4)?) / ?? * cos ( ?/2 ?) by hand.

b) By using a 2x1 subplot, plot ?[?] signal defined in Question 1 in the first row. Take ? between -100 s and 100 s and limit x-axis between -20 sand 20 s. Be careful about when ? = 0. What is the value of ?[0]? While plotting ?[?] please write an if statement for ? = 0. After that, write a MATLAB code that calculates and plots the DTFT of ?[?]. Then, plot the DTFT of ?[?] in the second row of the subplot. Take 1000 equally spaced frequency values between -2π and 2π by using linspace. Do not forget axis labels.

For this assignment, you will apply what you learned in analyzing a simple Java™ program by writing your own Java™ program that creates and accesses an array of integers. The Java™ program you write should do the following:

• Create an array to hold 10 integers
• Ask the user for an integer. Note: This code has already been written for you.
• Populate the array. Note: The first element should be the integer input by the user. The second through tenth elements should each be the previous element + 100. For example, if the user inputs 10, the first array value should be 10, the second 110, the third 210, and so on.
• Display the contents of the array on the screen in ascending index order.

Complete this assignment by doing the following:

1. Download and unzip the linked Week 4 Coding Assignment Zip File.
2. Read each line of the file carefully, including the detailed instructions at the top.
3. Add comments to the code by typing your name and the date in the multi-line comment header.
4. Replace the following lines with Java™ code as directed in the file:

• LINE 1
• LINE 2
• LINE 3
• LINE 4
• LINE 5

1. Comment each line of code you add to explain what you intend the code to do.
2. Test and modify your Java™ program until it runs without errors and produces the results as described above.

Program Summary: This program demonstrates these basic Java concepts:
* - Creating an array based on user input
* - Accessing and displaying elements of the array
*
* The program should declare an array to hold 10 integers.
* The program should then ask the user for an integer.
* The program should populate the array by assigning the user-input integer
* to the first element of the array, the value of the first element + 100 to
* the second element of the array, the value of the second element + 100 to
* the third element of the array, the value of third element + 100 to
* the fourth element of the array, and so on until all 10 elements of the
* array are populated.
*
* Then the program should display the values of each of the array
* elements onscreen. For example, if the user inputs 4, the output
* should look like this:
*
* Enter an integer and hit Return: 4
* Element at index 0: 4
* Element at index 1: 104
* Element at index 2: 204
* Element at index 3: 304
* Element at index 4: 404
* Element at index 5: 504
* Element at index 6: 604
* Element at index 7: 704
* Element at index 8: 804
* Element at index 9: 904
***********************************************************************/
package prg420week4_codingassignment;

// We need to import the following library if we want to use the
// Scanner class to get user input.
import java.util.Scanner;

public class PRG420Week4_CodingAssignment {

public static void main(String[] args) {
  
// LINE 1. DECLARE AN ARRAY OF INTEGERS
  

// LINE 2. ALLOCATE MEMORY FOR 10 INTEGERS WITHIN THE ARRAY.
  
  
// Create a usable instance of an input device
Scanner myInputScannerInstance = new Scanner(System.in);
  
// We will ask a user to type in an integer. Note that in this practice
// code WE ARE NOT VERIFYING WHETHER THE USER ACTUALLY
// TYPES AN INTEGER OR NOT. In a production program, we would
// need to verify this; for example, by including
// exception handling code. (As-is, a user can type in XYZ
// and that will cause an exception.)
System.out.print("Enter an integer and hit Return: ");
  
// Convert the user input (which comes in as a string even
// though we ask the user for an integer) to an integer
int myFirstArrayElement = Integer.parseInt(myInputScannerInstance.next());
  
// LINE 3. INITIALIZE THE FIRST ARRAY ELEMENT WITH THE CONVERTED INTEGER myFirstArrayElement

  
// LINE 4. INITIALIZE THE SECOND THROUGH THE TENTH ELEMENTS BY ADDING 100 TO THE EACH PRECEDING VALUE.
// EXAMPLE: THE VALUE OF THE SECOND ELEMENT IS THE VALUE OF THE FIRST PLUS 100;
// THE VALUE OF THE THIRD ELEMENT IS THE VALUE OF THE SECOND PLUS 100; AND SO ON.

  
// LINE 5. DISPLAY THE VALUES OF EACH ELEMENT OF THE ARRAY IN ASCENDING ORDER BASED ON THE MODEL IN THE TOP-OF-CODE COMMENTS.

}
}

1. Refer to excel data given below.

Modify model for projection of free cash flows from the Home Net project along the following dimensions:

1. Assume the equipment needed for the project is depreciated according to MACRS 5-year depreciation schedule:

5-year MACRS:

Year 0: 20%

Year 1: 32.0%

Year 2: 19.2%

Year 3: 11.52%

Year 4: 11.52%

Year 5:   5.76%

2. The equipment is sold at the end of year 4 for $0.5 m
3. One of every five customers expected to buy a Home Net device would have bought a Cisco router if Home Net devices were not available
4. In order to maintain constant number of units (100,000/year) sold over the duration of the project Cisco is planning to offer an introductory price of $250/unit in the first year, and going to reduce the price to $230/unit in the fourth year. In the second and the third year, as customers get to appreciate the new device, Cisco is hoping to be able to sell the gadgets for $260 per unit
5. Assume that the Net working capital is recovered as soon as the production is over (at the end of year 4)
6. Estimate NPV of the project assuming that r_wacc= 12%
7. Change your assumption about cost of capital and try several values above and below the initial value of 12%. Construct NPV-sensitivity-to-r_waccgraph (r_waccvalues must be on the X-axis, corresponding values of NPV on the Y-axis)

Data for the question:

Although the following questions ask you to draw diagrams, you do not have to submit these. You do, however, need to know how to draw them.

Suppose Apple has a monopoly on a new product, the iFraud. The market is characterized by:

            Short Run Marginal Cost of Supply:             MC = 100 + 2Q

            Short Run Average Total Cost:                      AC = 100 + Q + 150,000/Q

            Marginal Willingness to Pay:                         P = 1600 – 4Q

A. Illustrate the MC, Demand, and Marginal Revenue on a diagram. What do the equilibrium price and quantity equal?

Quantity =

Price = $

B. Make a copy of your illustration from part A. On this diagram, identify the consumer surplus, producer surplus, and deadweight loss. The DWL should be a triangle with a maximum point at a price of $  , a minimum point at a price of $  , and a final point to the right at a quantity of  .

C. Compute the values of consumer surplus, producer surplus, and deadweight loss. Recall that the area of a triangle is (1/2)*Base*Height.

CS = $

PS = $

DWL = $

D. What does the profit equal?

$

E. Will Apple will shut down production of the iFraud in the short run?

(Click to select)  Yes, because its price is less than its AVC.  No, because its price is greater than its AVC.  Yes, because its producer surplus is negative.  Yes, because its profit is negative.  No, because its producer surplus is positive.

F. Is the profit the same as producer surplus?

(Click to select)  No  Yes

G. What would the efficient level of production be?

H. If Apple produced iFrauds at the efficient price and quantity, what is the social welfare generated?

$