When Apple introduced the iPod in 2001, the iPhone in 2007 and the iPad in 2010, it substantially innovated respectively the multimedia player, the smartphone and the tablet industry. Consider the demand for an innovative Apple product y as D(p) = 1000 – p, and a cost function of c(y)=200∙y.

1. At first consider Apple having a monopoly in this market. What is the inverse demand curve p(y)? With profits being π = p(y)∙y – c(y), what is the profit maximizing quantity y? What is the corresponding price p? What is profits π and what is the consumer surplus CS?

2. Soon after another firms enters with a virtually identical product, and a leader-follower dynamic ensues. Overall industry output is Y = y₁ + y₂, where y₁ is the leader Apple product and y₂ is the follower competitor product. The inverse demand curve you derived in part a is now p(Y) and Apple’s profits are π₁ = p(Y)∙y₁ – c₁(y₁) and the competitor’s profits are π₂ = p(Y)∙y₂ – c₂(y₂), where c₂(y₂) = 200y₂. Find the competitor’s reaction function y₂=R₂(y₁).

3. Being the industry leader, Apple is well aware of how the follower will react once Apple decides its production capacity. What is Apple’s optimal production level y₁? Substitute R₂(y₁) into Y and maximize π₁ with respect to y₁. How does this y₁ compare to the output level you found in part a? How does the leader quantity decision making differ from a monopolist?

4. Given y₁ you determined in part c, what is y₂? Plug y₁ into R₂(y₁). Given y₁ and y₂, what is Y? What is the market price p and how does it compare to what you found in part a? What are profits π₁ and π₂? What is the consumer surplus now, and how does it compare to the one you found in part a?

THe Golfing Statistics provides data for a portion of the 2010 professional season for the top 25 golfers.

A) Find the best multiple regression model for predicting earnings/event as a function of the remaining variables.

B) Find the best multiple regression model for predicting average score as a function of the other variables except earning sand events.

On January 1, 2010, the Felix Company purchased a machine to use in the manufacture of its product. The invoice cost of the machine was $260,000. At the time of acquisition, the machine had an original estimated useful life of 10 years and an estimated salvage value of $20,000. Annual depreciation was recorded at $24,000 per year. The machine was depreciated using the straight-line method. On August 1, 2015, Felix exchanged the old machine for a newer model. The new machine had a fair market value of $200,000. The estimated fair value of the old machine was $150,000. Felix also paid $50,000 as part of the exchange transaction. The old machine was depreciated on Felix’s books up through December 31, 2014.

1. Bring Felix’s depreciation on this machine up to date through the date of the exchange.

Which of the following are goals of the Patient Protection and Affordable Care Act of 2010? Select all that apply.

A. Expand access to those without health coverage

B. Eliminate insurance companies

C. Improve affordability to those who are already covered

D. Slow the annual rise in health care costs while not adding to the federal budget deficit

A company expanded into a new market in 2010. The expansion required an investment of $100 in fixed assets per year for seven years (starting 2011). However, at the end of 2015, the company decided to terminate the project and sell off the fixed assets in place. Assume 30% tax rate and zero starting value of fixed assets. All fixed assets were depreciated following the MACRS schedule shown below. How much was the depreciation tax shield in year 2015?

Group of answer choices

$24

$17.28

None of the above

$28.27

$30

On January 1, 2010, the Felix Company purchased a machine to use in the manufacture of its product. The invoice cost of the machine was $260,000. At the time of acquisition, the machine had an original estimated useful life of 10 years and an estimated salvage value of $20,000. Annual depreciation was recorded at $24,000 per year. The machine was depreciated using the straight-line method.

On August 1, 2015, Felix exchanged the old machine for a newer model. The new machine had a fair market value of $200,000. The estimated fair value of the old machine was $150,000. Felix also paid $50,000 as part of the exchange transaction.

The old machine was depreciated on Felix’s books up through December 31, 2014.

Required

1. Bring Felix’s depreciation on this machine up to date through the date of the exchange.

2. Prepare the journal entry on August 1, 2015 to record the exchange assuming that

1. the exchange transaction had commercial substance.

2. the exchange transaction lacked commercial substance.

In 2010, it was reported that teens sent on average 3,300 texts per month. It is believed that the number of texts sent has increased. In fact, a recent random sample of 60 teens showed that they send an average 3,500 texts per month(X¯=3,500 textsX¯=3,500 texts)  with a sample standard deviation of 500 texts (s=500 textss=500 texts). Assume that the random variable, number of texts sent by teens (denoted by X), is normally distributed.

Is this sufficient statistical evidence to show that teens are now sending on average more than 3,300 texts per month?

Question 16

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Specify the null and alternative hypotheses.

Select one:

a. H(0): μ≥3,300μ≥3,300   versus H(a): μ<3,300μ<3,300

b. H(0): μ≤3,300μ≤3,300 versus H(a): μ>3,300μ>3,300

Question 17

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The standard error (SE) of X¯X¯ is

Select one:

a. 64.55

b. 0.24

c. 0.76

d. 3.01

Question 18

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The test statistics value is

Select one:

a. 2.08

b. 0.53

c. 0.66

d. 3.10

Question 19

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The p-value is

Select one:

a. 0.999

b. 0.973

c. 0.001

d. 0.301

Question 20

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At α=0.01 and using the p-value

Select one:

a. We do not reject H(0)

b. We reject H(0) in favor of H(a)

Alpaca Inc. purchased a corner lot in 2010 at a cost of $500,000. The lot was recently appraised at $800,000. At the time of the purchase, the company spent $25,000 to grade the lot and has been leasing this place as a parking lot for $10,000 a year. The renewal for the lease contract was not expected to expire until 2030. The company now wants to build a new retail store on the site. The building cost is estimated at $75,000.

* Choose all values to be considered and included in calculating the free cash flows for capital budgeting.

1. Purchase price of the corner lot @ $500,000
2. Appraisal of $800,000
3. Grading @ $25,000
4. Parking lot lease @ $10,000 per year
5. Cost to build a new retail store @ $75,000

Group of answer choices

* Choose all values to be considered and included in calculating the free cash flows for capital budgeting.

1. Purchase price of the corner lot @ $500,000
2. Appraisal of $800,000
3. Grading @ $25,000
4. Parking lot lease @ $10,000 per year
5. Cost to build a new retail store @ $75,000

Group of answer choices

I and IV only

II and V only

II, III, and IV only

II and IV only

II, IV and V only

At a trade fair in Leipzig, Germany in October 2010 Mascot’s representative was approached by a major German manufacturer of workwear, who wanted the German manufacturer and Mascot to cooperate on pricing and workwear models, so that they would not, as the representative said, "compete each other out of business". Please analyze what legal problems can be linked to the listed events? You must provide a legal justification for the solution