4. This is the data for a perfectly competitive producer.
Output Total Cost
0 100
5 110
10 130
15 170
20 220
25 290
30 380
35 490
A) How much will this firm produce when the price is $ 8? Why?
B) How much profit or loss will he make?
C)The firm comes to you for advice. Should he shut down? YES? NO? What are you basing your decision on?
5. Based on the data in question 4 what will be the price in the long run in this market? Show with a graph on how the market and producers will reach it.
In: Economics
Rights Issue Micro-Electronics Corporation (MEC) has just announced that it will issue 10 million shares of common stock through a rights issue at a subscription price of $25. Before the announcement, MEC shares were trading at $31, and there were 100 million shares outstanding.
a. How many rights will MEC grant to its existing shareholders?
b. How many rights will an investor need to buy one new share?
c. What will happen to MEC's share price when the rights issue is announced?
d. What should be the value of right?
Please show all your work.
In: Finance
York Manufacturing makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, York sold 12,000 gyms and 8,000 tree houses.
Q1 What is the number of jungle gyms sold at break-even?
Q2 What is the number of tree houses sold at break-even?
In: Accounting
| Settlement Date= | 5/12/2013 | |
| Maturity Date= | 5/12/2023 | |
| Coupon Rate= | 8.000% | |
| Current Market Price= | 94.00 | |
| Redemption value at Maturity %= | 100 | |
| Coupon Pmts per year= | 2 | |
| Call Provision | ||
| Year | Call Price | Dates |
| Year 1 = | 105 | 5/12/2014 |
| Year 2 = | 104 | 5/12/2015 |
| Year 3 = | 103 | 5/12/2016 |
| Year 4 = | 102 | 5/12/2017 |
| Year 5 = | 101 | 5/12/2018 |
| YTM = | ||
| YTC (3) = | ||
|
YTW = |
||
| Please use excel for this | ||
In: Finance
Q1. Assume a perfectly competitive firm's total cost (TC) for differents levels of oututes Q is given by:
Q TC
0 50
1 100
2 140
3 170
4 190
5 210
6 230
7 260
8 300
9 350
10 410
In the table format for the range of output (Q) provided determine: average total costs, average fixed cost, average variable costs, and marginal costs. At a price of $35 how many units will be produced in the short run? At this price how many units will be produced in long run?
In: Economics
The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Instructions: Enter your responses in the gray-shaded cells. Round your answers to 2 decimal places.
Year Nominal GDP, Billions Price Index (2005 = 100) Real GDP, Billions Effect on Nominal GDP
1968 $914.80 22.01 ### ###
1978 2298.80 40.40 ### ###
1988 5105.40 66.98 ### ###
1998 8798.50 85.51 ### ###
2008 14446.40 108.48 ### ###
(Please fill in the (blanks= ###) Thanks)
In: Economics
Questions 1-16: Given the following information about bushels of corn:
|
Price per Bushel |
Quantity Demanded |
Quantity Supplied |
|
$1 |
650 |
100 |
|
$2 |
540 |
120 |
|
$3 |
350 |
150 |
|
$4 |
200 |
200 |
|
$5 |
190 |
300 |
|
$6 |
175 |
410 |
13. Give a real example of this in the real world.
Start from the original data in the table. Now, suppose the government imposed a maximum price of $2 per bushel of corn
14. What is the economic term for this?
15. What is the effect in the market of such a government action?
16. Give a real example of this in the real world.
In: Economics
5.) Suppose that a 10% discount on the price of Tempur-Pedic mattresses results in quantity demanded to increase by 5%. Based on this information, demand for Tempur-Pedic is:
inelastic
unitary elastic
income elastic
6.) Suppose the government wants to reduce teenage smoking by 50%. If the teenage elasticity of demand for a pack of cigarettes is 2, by what percentage would the government have to increase the price of a pack of cigarettes to achieve their goal?
10%
25%
100%
7.) Which one of the following factors would reduce the elasticity of demand for a particular product?
more time to shop around
no close substitutes
big part of budget
In: Economics
Dr. Gregory House observed that SureWin’s stock is priced at £60 per share. From his analysis, he speculates that the price of the stock will eventually fall to £30 per share. Thus, Dr. House gathers that he can make some profit from the price differences through his broker. Given that his broker requires a 30% maintenance margin requirement and using 100 units of SureWin’s stock:
a) How can Dr. House obtain profit?
b) What is the net profit that Dr. House can obtain after adjusting for a 30% maintenance margin requirement?
In: Finance
Question 1. In a closed economy, the consumption function is given by C = 200 + 0.75(Y-T). The investment function is I = 200 – 25r. Government purchases and taxes are both 100. The money demand function in the economy is (M/P)d = Y – 100r. The money supply M is 1,000 and the price level P is 2.
a. Derive the equations of IS and LM curves.
b. Find the equilibrium interest rate r and the equilibrium level of income Y, given the price is fixed. Graph the IS and LM curves and the equilibrium r and Y.
c. Derive an equation for the aggregate demand curve in this economy.
In: Economics