Amazon is the dominant firm in the online shopping service industry, which has a total market demand given by Q = 100 – 2 P. Amazon has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given by TC_i = 10 Q_i +  Q ²_i. If Amazon’s total costs are given by TC_A = 10 + 10 Q_A, what price should Amazon establish for online shopping service?

Please explain why! I am studying :)

31. Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $200, and the marginal cost of the 40th unit is $120. If the good were produced in a perfectly competitive market, the equilibrium quantity would be 50, and the equilibrium price would be $150. The demand curve and marginal cost curves are linear. What is the value of the deadweight loss created by the monopolist?

Easy Sleazy Recliner Corp. has a capital structure including the following: 50,000 bonds selling for $1,140, original maturity of 30-years, 12-years old, par = $1,000, paying an annual coupon rate of 8%. Also, 140,000 shares of 5% preferred stock, par value = $100, market price = $120; and 1 million shares of common stock. ESR's beta is 0.92, risk free rate = 2%, market return = 12%. Market price is $42/share. Tax rate = 21%. What is the WACC?  

A person has $250 to spend on two goods (x and y) whose respective prices are $2 per unit and $5 per unit.

1. (a) Draw the budget line showing all the different combinations of the two goods that can be bought with the given budget.

2. (b) What happens to the budget line if the budget (money available to spend) increases by 100%.

3. (c) What happens to the budget line if the price of good x decreases by 50%?

4. (d) What happens to the budget line if the price of good y increases to $10 per unit?

1. A consumer purchases two goods, x and y and has utility function U(x; y) = ln(x) + 3y. For this utility function MUx =1/x and MUy = 3. The price of x is px = 4 and the price of y is py = 2. The consumer has M units of income to spend on the two goods and wishes to maximize utility, given the budget.
   
   1. Draw the budget line for this consumer when M=50 and the budget line when M=100. Put good x on the horizontal axis.

A 8.93% semiannual-pay corporate bond matures 15 August 2028 and makes coupon payments on 15 February and 15 August. The bond uses the 30/360 day-count convention for accrued interest. The bond is priced for sale on June 5, 2020 (that is, 110 days since the Feb. 15 coupon). What is its flat price (or clean price) per $ 100 of par value on June 5, 2020 if its yield to maturity is 5.1%? Carry intermediate calcs. to four decimals. Answer to two decimals.

Consider the purchase of a put option with an exercise price of between $40 and $49 that costs $5 and the purchase of a call option with the same expiration date and on the same stock with an exercise price of between $51 and $60 that costs $6. Choose any strikes in the ranges. On ONE Graph plot profit for the component positions and the combination for ending stock prices from at $0 to $100, in increments of not more than $5. Be sure to label your axes and all key points and include a legend. Include both your table and the graph in your report.

The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year.

What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.)

A 9.81% semiannual-pay corporate bond matures 15 August 2028 and makes coupon payments on 15 February and 15 August. The bond uses the 30/360 day-count convention for accrued interest. The bond is priced for sale on June 5, 2020 (that is, 110 days since the Feb. 15 coupon). What is its flat price (or clean price) per $ 100 of par value on June 5, 2020 if its yield to maturity is 5.7%? Carry intermediate calcs. to four decimals. Answer to two decimals.

Consider the following historical information for Sonny’s Body Shop over the past five years.

Earnings are expected to grow at 10% for the next four years. Using the company’s historical average PE ratio as a bench mark, (a) what is the target stock price next year? (b) What about four years from now?