Consider a small, isolated town in which a brewery faces the following inverse demand: ?=15−0.33?P=15−0.33Q. The brewery can produce beer at a constant marginal and average total cost of $1 per bottle.

a. Calculate the profit-maximizing quantity and price. Specify all amounts to two decimal places.

Q ≈

P ≈ $

b. Calculate consumer and producer surplus and the deadweight loss from market power.

CS = $

PS = $

DWL = $

c. If it were possible to organize the townsfolk, how much would they be willing to pay the brewery to sell beer at a price equal to its marginal cost?

$74.24

$222.71

$340.88

$148.47

d. What is the minimum payment the brewery would be willing to accept to sell beer at a price equal to marginal cost?

$148.47

$74.24

$340.88

$222.71

e. Could the townsfolk and the brewery strike a bargain? Would there by any deadweight loss if such a bargain were struck?

Yes. The townsfolk could pay the brewery an amount that lies between the amounts you specified in parts c and d. There would then be no deadweight loss.

Yes. The townsfolk could pay the brewery an amount that lies between the amounts you specified in parts c and d. There would then be a deadweight loss smaller than the deadweight loss you specified in part b.

No. The amount the townsfolk require exceeds what the brewery is willing to pay.

No. The amount the brewery requires exceeds what the townsfolk are willing to pay.

Samantha Spartan is an instructor of Accounting at the Spartan University (SU) located in Lakewood Ranch, Florida. Instructors at SU are hired on a semester by semester basis as needed and are paid as independent contractors receiving a 1099 for each semester’s work. Samantha has filed her personal 1040 using a schedule C to report income from self employment. Samantha also prepares tax returns for a number of clients and includes that income on the same schedule C as her SU income. Samanths considers all her work “accounting”.

Typically instructors like Samantha have masters degrees and a professional credential such as the CPA. These so-called “term faculty” receive contracts each semester based on student demand for classes at SU.

Samantha has been teaching at SU each fall and spring semester for four years as she has been offered a new contract for each semester (except summer) since she started teaching. Instructors like Samantha teach classes at the undergraduate level and advise students.

In addition to semester by semester faculty like Samantha SU also employs tenure track faculty at ranks Assistant, Associate and Professor. Tenure track faculty have all the responsibilities of instructors and also engage in academic research and have obligations to be involved in University and/or external professional & community service. In order to move from the instructor to the tenure track position (which leads to two-year contracts, renewable each year) Samantha would need to obtain her Ph.D. degree.

The Dean of the Business College at SU has indicated to Samantha that there will no longer be instructor positions like hers available at SU (the school is upgrading its credential requirements) and she would need to show progress toward her Ph.D. degree in order to keep working at SU and potentially become an employee in the tenure track faculty.

Samantha enrolled in the Ph.D. program at Southern State University in Atlanta and must be on campus in Atlanta two days a month for her doctoral seminars. The Dean at SU has arranged her classes so that Samantha can meet her obligations at SU and make her trips to Atlanta. Additionally, the Dean provided a letter to Samantha indicating that the requirements for teaching at SU would require a Ph.D. degree from a respected school such as Southern State.

Samantha completed her first year at Southern State and deducted her tuition ($28,000), travel costs to Atlanta ($12,000) and her books & supplies ($2,800) which included a new Surface PC required in the program.

The IRS has examined Samantha’s return and disallowed all of the deductions claimed on Samantha’s Schedule C in connection with pursuing her degree. What result?

Problem 1: Endowment losses. An American university endowment has experienced severe losses over the past year. The value of the university's endowment is $1B as of today (t=0). The interest rate (i.e. the expected annual investment return on the endowment) is r = 7%. (a) What amount can the university spend from the endowment at t=1 if it would like the amount spent to grow by g=4% per year from then on and has no other resources than the endowment? (b) The planned spending is, however, much larger. Back when things looked better, the university set up plans to spend $40M at t=1, with future spending growing by 4% per year. What is the PV of the planned spending? How large is the shortfall between the PV of the planned spending and the value of the endowment? (c) The university president approaches the university's business school for innovative ideas for how to cover the shortfall to avoid having to cut spending. The business school 1 suggests that the university sets up a campus in Abu Dhabi and negotiates the following deal: Abu Dhabi will pay the university $200M today (t=0) for the right to name the campus after the famed university for the next 12 years (i.e. up to t=12) and have classes taught by professors from the university. The new campus would be ready to open two years from now (t=2). At the end of each of the following 10 years (t=3, 4, 5, 6, ...,12) Abu Dhabi would pay the university $24M (Abu Dhabi would also cover the cost of hiring extra faculty and travel cost for US faculty to go teach on the new campus, so the $24M is the university's per year profit). The deal would end at t=12. What is the PV of the deal with Abu Dhabi? Is it sufficient to cover the shortfall? (d) The university president is impressed with the PV calculations but would also like to know exactly how the endowment will develop over the years, assuming the deal with Abu Dhabi is accepted. At t=0 after the initial payment from Abu Dhabi, the value of the endowment is $1.2B. What is the value of the endowment at t=1 (after interest is received and after paying for the university's t=1 spending)? What is the value of the endowment at t=12 (after interest is received, after the last payment from Abu Dhabi and after paying for the university's t=12 spending)? At what time will the endowment equal zero if the deal with Abu Dhabi is not accepted (please report the time at which the endowment rest goes negative)? Hint: Do not bother with Excel functions here, just calculate the value of the endowment in a spreadsheet year by year for the different cases.

case study

Target Corp – Data Mining in Retail Target is a large retail chain that crunches data to develop insights that help target marketing and advertising campaigns. Target analysts managed to develop a pregnancy prediction score based on a customer's purchasing history of 25 products. In a widely publicized story, they figured out that a teenage girl was pregnant before her father did. The targeting can be quite successful and dramatic as this example published in the New York Times illustrates. About a year after Target created their pregnancy-prediction model, a man walked into a Target store and demanded to see the manager. He was clutching coupons that had been sent to his daughter and he was angry, according to an employee who participated in the conversation. “My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?” The manager didn’t have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man’s daughter and contained advertisements for 70 maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again. On the phone, though, the father was somewhat subdued. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. I owe you an apology.” (Source: New York Times).

Answer for this questions is just below but its someone else work , can you help me with this similar answer for this question.i just gave you the hint how to do this .

Answer: As a Retailer or Target store manager, they have right to collect all the order value or purchase material information about customer. But the store keeper are predicting the future things by the analysing last twenty-five product that she bought from the store. It’s hard for parent to accept the pregnancy result of their teen-age and high school daughter so they can be angry. Because, their prediction cannot be sure all the time, they should concern with customer before making any future guesses and sending any coupons to the customer’s address. Things can be different like may she had bought all those materials to her pregnant friends, or may be she was gifting it to her baby nieces. So shopkeeper should concern about these thing before making any prediction.

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,435.00 per year (all expenses included). Tuition will increase by 5.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 9.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years) The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,801.00 per year (all expenses included). Tuition will increase by 4.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 7.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years) The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $20,432.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 9.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years)

The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)

Question 1

a). i. To estimate the average time it takes to assemble a certain printer component, the industrial engineer at an electronics firm timed 40 technicians in the performance of this task, getting a mean of 12.73 minutes and a standard deviation of 2.06 minutes. Construct a 98% confidence interval for the true average time it takes to assemble the printer component.

ii. A sample of 16 girls gave a mean mass of 35 kg and a standard dev iation of 6 kg. Assumingnormality,constructa96%confidenceintervalfor ?.

iii. A random sample of 20 students obtained a mean of 72 and variance of 16 on a Mathematics examination. Assuming the scores to be normally distributed, construct a 98% confidence interval for?2.

b. Briefly explain the following: i)Critical Region

ii)Confidence Coefficient

iii)Alternative Hypothesis

c. A car manufacturer claims that the average weekly income of owners of his car is $180. An investigator takes a sample of 200 such car owners and finds out that they have an average weekly income of $184.26 with a standard deviation of $24.12. On the basis of the sample, do you agree with the manufacturer’s claim? Test at ? = 5%.

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $22,119.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 7.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years)

The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)

Julie throws a ball to her friend Sarah. The ball leaves Julie’s hand a distance 1.0 m above the ground with an initial speed of 10 m/s at an angle 30◦ with respect to the horizontal. Sarah catches the ball 1.0 m above the ground.

(a) What is the horizontal component of the ball’s velocity right before Sarah catches it?

(b) What is the vertical component of the ball’s velocity right before Sarah catches it?

(c) What is the time the ball is in the air?

(d) What is the distance between the two girls?

(e) After catching the ball, Sarah throws it back to Julie. However, Sarah throws it too hard so it is over Julie’s head when it reaches Julie’s horizontal position. Assume the ball leaves Sarah’s hand a distance 1.0 m above the ground, reaches a maximum height of 6 m above the ground, and takes 1.115 sec to get directly over Julie’s head. What is the speed of the ball and the angle with the horizontal when it leaves Sarah’s hand?

(f) How high above the ground will the ball be when it gets to Julie?