A real estate investor likes to “flip” houses. That is, he likes to buy a house at a low price and then “flip” or sell the house for a higher price. The investor is looking at a foreclosed house that will cost $241,374.00 today. He will invest an additional $42,764.00 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $420,169.00 at the end of the second year. What is the NPV of this investment if our investor wants to earn a 19.00% annual return on the house?

a. Give three characteristics of a perfectly competitive market. [3 marks]

b. List and explain three types of barriers to entry that may be used in a monopoly. [3 marks]

c. For a monopolist, why is marginal revenue less than price for every level of output except the first? [4 marks]

d. Give the conditions which should exist for price discrimination? [3 marks]

e. Draw a diagram to show the long run equilibrium condition of the perfectly competitive firm [4 marks]   

Ramstucky Corp bonds just paid their annual coupon of 4%. They mature in 6 years. The required rate of return on the bonds is 5%. The call price of the bonds is 102, but they are not callable until after the second coupon payment.

1. What is the price of the bonds as a percentage of par?
2. What is the current yield?
3. What is the yield to first call?
4. If, immediately after the second coupon payment, the yield to maturity is 4.5% and you sell the bond at that time, what rate of return will you have received over the two years?

1. Draw an hypothetical market for hand sanitizer in Florida prior to the pandemic. (Be sure to label your axes. Label your first demand curve D1 and your first supply curve S1. Label your initial equilibrium price P1 and initial equilibrium quantity Q1).

2. Show what has happened in the market for hand sanitizer around the stay-at-home order. Make sure you discuss what had happened, and give a graphical representation of the new situation by adding to the diagram in question 1. (Be sure to label all your axes, labelling D2, S2, P2, and Q2 to emphasize the post pandemic situation ).

3. The article from Tampa Bay Times reported that "Two 8-ounce bottles of Purell were being sold for $99. Six two-ounce bottles of sanitizer, travel sizes smaller that fit into your palm, were listed at $50." Assuming Governor Rick DeSantis called upon you for economic consultation based on economic theories as a community leader:

1. What would you recommend to the governor? To uphold the price gouging law or not to uphold it? Support your choice.
2. Who will loose if the law is upheld?
3. Is there a defined line between price increases and price gouging during this crisis in Florida? Who makes this distinction?

1. Suppose that you are considering the purchase of a coupon bond that has a $200 coupon payment every year for 5 years and a $10,000 face value in the 5th year. Suppose the yield to maturity of this bond equals to the market interest rate. a. What is the bond worth today if the market interest rate is 3%? What is the bond’s current yield? (Hint: knowing the interest rate, the value of the bond is how much you should pay for the bond—the price of the bond) b. Suppose one year has elapsed, you have received the first coupon payment of $200 and the market rate is still 3%. How much would another investor be willing to pay for the bond now? Given the price that the other investor is willing to pay (the price at which you can sell the bond), what was your total rate of return on the bond? c. Suppose that one year has elapsed, you have received the first coupon payment of $200 but the market rate suddenly jumps to 5%. In that case how much would another investor be willing to pay for the bond now? What was your total rate of return on the bond? d. Compare your answers from b and c, and explain the relation between the yield to maturity (here the market rate) and the price of bond.

If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4-year 4.4 percent coupon bond with annual coupon payments and a face value of $1,000.

a. Assume the yield to maturity is 3.4 percent.

What is the current value of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Bond price today            $

What will the bond value be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Bond price in one year            $

What is the rate of return for the first year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Rate of return             %

b. Assume the yield to maturity is 5.4 percent.

What is the current value of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Bond price today            $

What will the bond value be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Bond price in one year            $

What is the rate of return for the first year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Rate of return             %

Two organic emu ranchers, Bill and Ted, serve a small metropolitan market. Bill and Ted are Cournot competitors, making a conscious decision each year regarding how many emus to breed. The price they can charge depends on how many emus they collectively raise, and demand in this market is given by Q = 150 − P. Bill raises emus at a constant marginal and average total cost of $10; Ted raises emus at a constant marginal and average total cost of $20. (a) Find the Cournot equilibrium price, quantity (total and for each rancher), profits (for both ranchers), and consumer surplus. (b) Suppose that Ted breeds his emus earlier in the year than Bill, and is a first-mover in the market. Find the Stackelberg equilibrium price, quantity (total and for each rancher), and profits (for both ranchers). Does your answer coincide with the first-mover advantage? (c) Suppose that Bill and Ted merge, and become a monopoly provider of emus. Further, suppose that Ted adopts Bill’s production techniques. Find the monopoly price, quantity, total profits, and consumer surplus. (d) Has the combination of the two ranches discussed above been good for society or bad for society? Discuss how the forces of monopoly power and increased efficiency tend to push social well-being in opposite directions.

In C++

A new author is in the process of negotiating a contract for a new romance novel. The publisher is offering three options.

• In the first option, the author is paid $5,000 upon delivery of the final manuscript and $20,000 when the novel is published.
• In the second option, the author is paid 12.5% of the net price of the novel for each copy of the novel sold.
• In the third option, the author is paid 10% of the net price for the first 4,000 copies sold, and 14% of the net price for the copies sold over 4,000.

The author has some idea about the number of copies that will be sold and would like to have an estimate of the royalties generated under each option.

Instructions

Write a program that prompts the author to enter:

1. The estimated number of copies that will be sold.
2. The net price of each copy of the novel

The program then outputs:

1. The royalties under each option
2. The best option the author could choose.
   • Ex. If option 1 is the best, output Option 1 is the best

(Use appropriate named constants to store the special values such as royalty rates and fixed royalties.)

Since your program handles currency, make sure to use a data type that can store decimals with a decimal precision of 2.

Example input:

120
22.99

Expected Output:

25000.0

344.8

275.8

Option 1 is the best

(C++) Redo Programming Exercise 16 of Chapter 4 so that all the named constants are defined in a namespace royaltyRates. Instructions for Programming Exercise 16 of Chapter 4 have been posted below for your convenience. Exercise 16 A new author is in the process of negotiating a contract for a new romance novel.

The publisher is offering three options. In the first option, the author is paid $5,000 upon delivery of the final manuscript and $20,000 when the novel is published. In the second option, the author is paid 12.5% of the net price of the novel for each copy of the novel sold. In the third option, the author is paid 10% of the net price for the first 4,000 copies sold, and 14% of the net price for the copies sold over 4,000. The author has some idea about the number of copies that will be sold and would like to have an estimate of the royalties generated under each option. Write a program that prompts the author to enter the net price of each copy of the novel and the estimated number of copies that will be sold. The program then outputs the royalties under each option and the best option the author could choose. (Use appropriate named constants to store the special values such as royalty rates and fixed royalties.)

An input of: 20, 5

Should have an output of:

create a Java application program that will add up the cost of three items, then print the final total with sales tax.

You should begin by prompting the user to enter three separate prices for three items that are being purchased. For each item you should ask for (in this order) the quantity of the product and the price of the product.

The program should compute, and be able to print to the screen:

the subtotal (the total amount due before tax)

sales tax (the amount of sales tax that will be added, assume 7% tax rate)

total due (subtotal + sales tax)

The following is an example of what your MIGHT see on the screen when your program runs. The exact output depends on what values that the user types in while the program runs. The user's values are shown below in italics:

Enter the quantity of the first product: 3
Enter the price of the first product: $5.25
Enter the quantity of the second product: 2
Enter the price of the second product: $1.83
Enter the quantity of the third product: 7
Enter the price of the third product: $0.89

Subtotal: $25.64
Sales Tax: $1.79
Total Due: $27.43

can post a screen shot of your java program Would like to learn the steps, i am doing intro to Java programing