Working with the following data for a particular good, X:

Price                                                    Quantity Demanded                

$6.00/unit                                                        0                                              

$5.00/unit                                                        100                                          

$4.00/unit                                                        200                                          

$3.00/unit                                                        300                  

$2.00/unit                                                        400

$1.00/unit                                                        500

$0.00/unit                                                        600                  

1. Using graph paper or some other charting process (but don’t do it completely free-hand, accuracy counts in this assignment), draw a graph of the demand curve for good X.  Remember: The vertical axis should be Price; the horizontal axis should be Quantity.
2. Now draw another graph showing on the vertical axis the Total Revenue associated with each of the above values for Quantity demanded (which should be represented, as it was in your graph for (A), on the horizontal axis.
3. Redraw the demand curve you created in (A) above. Now add to that graph a new line below the demand curve which intersects the vertical axis (Price) at $6.00 and intersects the horizontal axis (Quantity) at the quantity value where Total Revenue is shown to be maximized on the graph you drew in (B). This new line you just created is the Marginal Revenue (MR) curve which was discussed in the lectures. More on this in the instructor-led discussion group.
4. Almost done with the graphs. To the graph that you just created in (C) above, now add a curve representing the Marginal Costs (MC) associated with producing Good X), using the following data to draw this supply curve:

Quantity                                                          Marginal Cost

0                                                                      $0.00

100                                                                  $1.00

200                                                                  $2.00

300                                                                  $3.00

400                                                                  $4.00

500                                                                  $5.00

600                                                                  $6.00

(E) Examining the graph you created in (D) above and drawing upon this unit’s lectures and readings about pricing in different types of markets, identify:

1. the equilibrium price P_C (expressed in $ per unit) and quantity Q_C (expressed in number of units) of good X in a perfectly competitive market, and
2. the equilibrium price P_M (expressed in $ per unit) and quantity Q_M (expressed in number of units) in a market served by a monopolist.
3. In addition to giving the values for price and quantity in each of these types of markets, briefly comment on any differences in the values of P and Q in your answers to (1) and (2).

Question 11 You would like to buy 200 shares of AAA Corporation which is currently selling for $x per share (x is calculated by multiplying the last digit of your student ID number by 10, if the last digit is zero, use 100). The initial margin is 60% and maintenance margin is 40%.

Calculate how much money you would need to provide and how much you would borrow.

You sell the stock one year later after the price has increased by 30%. If the interest rate on a margin loan was 10% p.a. and the stock paid a dividend per share (DPS) of $2 during the year.

i) How much money would you have in your account after you sold the stock and repaid the loan?

ii) What is the rate of return on your investment?

iii) What would be the rate of return if no margin is used?

Question 12

You are interested in selling 100 shares of YYY Corporation short. The initial margin is 50% and the maintenance margin is 30%. You sell the shares at $x (where x is the price 8 you used in Question 11 above).

i) How much money do you have to add to your account and how much money is in your account in total?

ii) At what price will you get a margin call?

iii) If the price of the stock immediately increased by 15%, and you bought it back at that price, what would be the rate of return on your investment (assume no fees or interest costs)?

Notes: • Include the following information in your answer o The initial price of the stock o The amount of money you add to your account o The total amount in your account at the start o The amount you lose o The rate of return of your investment • To show your workings • When calculating the investment rate of return in %, show explicitly the amount you earned compared with the amount you invested.

Can anyone help me to solve question 12?

1. Assume Apple issued bonds with a 20 year maturity at a coupon rate of 8.4 percent. The bonds make semiannual payments, and the YTM on these bonds is 7.5 percent.

What is the semiannual coupon payment?

A.$37.50

B.$42

C.$84

D.$75

2. Is the bond trading at par, discount, or premium?

A.Par

B. Discount

C.Premium

D.All the above

3. What is the yield that should be used to calculate the bond price?

A. 7.5%

B.4.35%

C. 8.4%

D.4.8%

4. What is the face value of this bond?

A. $1000

B.$10000

C.$500

D. $100

5. What is the price of the bond?

A.$1,092

B.$1,000

C.$633.80

D.$913.52

Consider the following growth function for fish given by F( X ) = rX(1 − X/K) where the intrinsic growth rate r = 0.2 and the carrying capacity K = 100 tons of fish. Let the harvest function be given by H = qEX where the catchability coefficient be q = 0.01 and H is harvest in tons of fish.

Compute the following:

a. The maximum yield of fish at the steady state.

b. Effort and Harvest when the price of fish is $1 per ton and the unit cost of effort is $0.5.

c. Determine the supply of fish under Open Access and a Managed Fishery. Consider the price of fish as $0.5, $1 and $2 per ton.

d. Plot these functions on a graph.

Please refer to the table above. The price of Product A is $1 and the price of Product B is $3. How many of Product A is in the optimal consumption choice if this consumer is limited to spending $25?

Provide your answer below:

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An individual derives utility from​ games, g (y−​axis), and toy​ airplanes, a​(x−​axis), described by the utility function​ U(g,a) = g^0.6a^0.4. The price per game is​ $20 and the price of toy airplanes is​ $10. Using the slope of the income consumption curve​ (ICC), determine whether games and toy airplanes are normal or inferior goods when income increases from​ $100 to​ $200.

A. Both goods are normal goods with an ICC slope of 4/3.

B. Both goods are inferior goods with an ICC slope of -4/3.

C. Both goods are inferior goods with an ICC slope of -3/4

D. Both goods are normal goods with an ICC slope of 3/4

Rosaline consumes only turkey sandwiches and juice and she spends all her income on turkey sandwiches and juice. The marginal utility of her last turkey sandwich consumed is 200 utils and the marginal utility of her last juice consumed is 100 utils. The price of a turkey sandwich is $4 and the price of juice is $3 . 1. Is Rosaline maximizing her level of utility? Justify. 2. Should Rosaline consume less or more turkey sandwiches to reach equilibrium? Justify. 3. If Rosaline consumes more Turkey Sandwiches and less Juice, her Marginal Utility for consuming Turkey Sandwiches is 160 utils and her Marginal Utility for consuming Juice is 120 utils. Is this level of consumption maximizing the utility?

1. The market demand curve for a product is D(p) = q = 400 – 0.5p. The market supply curve is S(p) = q = 4p – 100.
a. Find the inverse demand & supply curves. (2 point)
b. Calculate the market equilibrium price & quantity. (2 points)
c. Draw a graph depicting these curves & the market equilibrium price & quantity. (3 points)

2. A competitive firm has the following cost function: c(y) = 4y² + 300.

a. What is their fixed cost and how do you determine it? (1 point)
b. Same cost function: c(y) = 4y² + 300. At what quantity is average total cost minimized? Why? (2 points)

2.  The private marginal benefits for the flu vaccine is estimated to be MBp= 200-Q  where Q is the number of flu vaccines. The private marginal cost of producing the flu vaccine is MCp= 20. Because flu vaccines also reduce the probability that someone nearby receives the flu, there is a positive external benefit of MBe=100. No other externalities exist in the market.  

a. Solve for the market equilibrium price and quantity for flu vaccines. Solve the socially optimal level of price and quantity of flu vaccines (hint: MBS is the sum of MBP and MBE ).  

b. Graph all the curves and identify the deadweight loss area. Given the deadweight loss area you have identified in the graph, calculate the deadweight loss in the market.