You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table:

If the market price is $56, what is the profit-maximizing level of output?

Find the prices of the eight bonds (each with par $100) and then, use these information to construct the theoretical spot curve.

Consider an economy where there are 10 consumers with identical demand function:

q=100-2p

Suppose that aggregate supply is given by

QS=4p-10

1. How would your answer change if aggregate supply were perfectly elastic at price 20?
2. How would your answer change if the aggregate supply were perfectly inelastic at Q=500?

A travel agency is planning a trip to England for 100 members of a college faculty. The plane fare will be $600 per faculty member if all members attend the trip. With each cancellation, however l, the fare will increase by$250 per faculty member.

the cost to the agency is $20,000 plus $40 for each passenger.

What is the price that will generate the maximum profit for the agency?

Suppose that one factory inputs its goods from two different plants, A and B, with different costs, 4 and 6 each respective. And suppose the price function in the market is decided as p(x,y)= 100−x−y where x and y are the demand functions and 0≤x,y. Then as

x=

y=

the factory can attains the maximum profit,

A monopolist has a marginal revenue curve given by MR = 500 - 5Q, and a total cost curve given by TC = 1000 + 100Q. The monopolist has constant marginal cost of 100. What is the monopolist's demand curve? Calculate the monopolist's profit maximizing price and quantity. What is the monopolist's profit (or loss)? Show your work to the best of your ability.

Suppose a mutual fund has $4.5 billion in assets and $0.5 billion in liabilities based on current market values and a total of 100 million shares outstanding. What is the net asset value (NAV) for this mutual fund? Suppose this mutual fund has a current market price quotation of $42. Is this a load fund? If so, calculate the front-end load.

Delta Company issued $50,000,000 in bonds to Alpha at $100 per bond at the beginning of the year, At year’s end the market price of those bonds is $66 due to a general increase in interest rates ($12) and a deterioration in Alpha’s credit rating (accounting for the remaining $22).

Required:

Show the accounting treatments that should be used under HFT, AFS and HTM, and if not OTTI or OTTI.

Exercise 3.3
At a used dealership, let X be an independent variable representing the age in years of a motorcycle and Y be the dependent variable representing the selling price of used motorcycle. The data is now given to you.

X = {5, 10, 12, 14, 15}

Y = {500, 400, 300, 200, 100}

A.) Calculate S² and S.
B.) Interpret S.

In 2017, In and Out Burgers charged $6.50 for a cheeseburger meal and sold 100 million of them. In 2017, although In and Out raised the price to $7.00, sales of his cheeseburger meals rose to 110 million. Use the concepts of a shift in the demand curve versus a movement along the demand curve to explain why this increase in sales does not represent a violation of the law of demand.