1. Give two reasons why we should globally transition to renewable energy?

2. Economists affirm that economic growth is not only feasible but also desirable and that the planet will not run out of natural resources if we put in place a proper price mechanism. Please give a precise example of how the price mechanism will work to avoid running out of a given resource.

3. Do you expect oil prices to reach the level of $80 to $100/barrel in the future? Please support your explanation with clear arguments.

4. Several countries are progressively shifting to Electric Vehicles (EVs). Can you please give reasonable explanation why this is happening?

Q1. Peter is producing table lamps in the perfectly competitive market desk lamp market.

a) Suppose the equilibrium price in the desk lamp market is $50. How many table lamps should Peter produce, and how much profit will he make? Please make use of TR, TC, MR and MC curves to illustrate.

b) In next week, the demand for desk lamps drops and the price drops to $30, should Peter shut down? Explain.

The Perfect Rose Company is a flower industry member that grows and sells roses all year round in a perfectly competitive market.

The firm charges a price of $100 per box. The firm’s total costs are C(Q) = 50 + 12Q + 2Q².

a. How much output should the firm produce in the short run?

____units


b. What price should the firm charge in the short run?

$ _____


c. What are the firm’s short-run profits?

$_____


d. What adjustments should be anticipated in the long run?

A) Entry will occur until economic profits shrink to zero.

B) No firms will enter or exit at these profits.

C) Exit will occur since these economic profits are too low.

Alienware and Foxconn are two multinational electronics company operating in a homogeneous computer hardware market. The engineering department at Alienware has been steadily working on developing a patented technology that has enabled the firm to reduce its marginal cost and emerge as a leader in the market.

The inverse demand function for the market is   P = 1200 - 6Q

Alienware's costs are TC = 60Q_A and Foxconn's costs are TC = 120Q_F.
The current output for Alienware is Q_A = 100 while Foxconn produces Q_F = 50. The current price is P = 300.

Ignoring antitrust possibilities, suppose Alienware makes an offer to Foxconn and they are in the process of negotiating a merger.

What is the potential price of the product after the merger?

On December 31, 2015, Berclair Inc. had 442 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Net income for the year ended December 31, 2016, was $1,050 million.

Also outstanding at December 31 were incentive stock options granted to executives. The options were exercisable for 30 million common shares at an exercise price of $56 per share. During 2016, the market price of the common shares averaged $70 per share.

Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2016.

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $27.70 per share. On March 1, a dividend of $3.30 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $22.00 per share. You paid 25 cents per share in commissions for each transaction. a. What is the proceeds from the short sale (net of commission)? b. What is the dividend payment? c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $22.00 per share? d. What is the net gain from your transaction?

1. Suppose that a person bought 100 shares of company X for 100 euros per share on 01.01.2018. The commission fee charged on this transaction was 25 euros. This person kept these stocks for 2 years and sold his portfolio of company X stocks on 01.01.2020 for 121.55 euros per share. The commission fee charged on this transaction was 30 euros. During the holding period the investor received dividends 3.3 euros per share on 01.01.2019 and dividends 2.42 euros per share on 01.01.2020. Suppose that the realized capital gains are taxed at 20% and the dividends are tax exempt in the country of residence of this person. Suppose also that the annual rate of inflation in the country of residence of this person was 2% in 2018 and 2% also in 2019.

a) Find the nominal after-tax holding period rate of return for this person from the investment described.

b) Find the real after-tax holding period rate of return for this person from the investment described.

You bought 200 shares of Microsoft at $50 per share. 100 shares of IBM for $100 per share, and $300 shares of Amazon. com for $35 per share. what is the portfolio weight on the Amazon.com holding?

1. An economy has full-employment output of 2400. Government purchases are 100 and taxes are 100. Desired consumption and desired investment are given by

C^d = 100 + 0.6(Y-T)

I^d = 100 – 240r

where Y is output and r is the expected real interest rate.

1. Find the real interest rate that clears the goods market. Assume that output equals full-employment output.

2. Calculate the amount of public saving, private saving, National saving, investment, and consumption in equilibrium.

One hundred moles of moist air (100 moles) at 25oC and 100 kPa has a dew point of 16oC. If you want to remove 50% of the initial moisture in the air (at a constant pressure of 100 kPa).

1. Sketch the process.

2. Determine to what temperature should you cool the air? Assume that after removal of 50% of moisture from the air, the final air is saturated.