The average daily attendance of a small amusement park is 4,219 people. In order to increase the average daily attendance, the park owners decided to lower the price for admissions. For the first 25 days after the highly publicized price reduction the average daily attendance was 4,537. You can assume that the population standard deviation is 674. Assume that these 25 days can be considered a random sample of the days to come and that daily attendance follows a normal distribution.

a.) Test at the 5% level of significance whether the price reduction was effective. Explain your approach (including your hypotheses and test statistic) and conclusion.

b.) How and why would your answer in Part 1 change if the significance level had been 1%? Explain using 1 or 2 sentences.

thank you! :)

3. Consider a Monopoly with the following demand and cost structures: Price $18 $14 $12 $10 Quantity/ Output10 60 70 80

(a) First, label the relevant graphs correctly. (2 points)

(b) From the diagram what is the profit maximizing output of the monopolist? Why? (2 points)

(c) From the diagram what is the price that the monopolist charges on each unit she sells. Briefly explain. (1 point)

(d) Compute the Monopolist’s profit? (2 points)

(e) If instead this was a perfectly competitive market, what would be the profit maximizing output of this market, and its price? Briefly explain. (2 points)

(f) If this was still a perfectly competitive market with the same cost structure as the monopolist, would the market to be in the short or in the long run? Briefly explain. (2 points)

Q3: a) The following table shows some costs of a typical firm that operates in a perfectly competitive industry where the market price (P*) is $20 per unit. Complete the following table. Show values to 2 decimal places if they are not whole numbers.

Hint: Start with the first row.

b) What is the firm’s profit maximizing output level and what is the size of the firm’s economic profit at this output level?

c) What does the firm’s shut-down price equal?

d) What does the firm’s break-even price equal?

Consider a monopoly with inverse demand function  p = 24 -  y and cost function  c( y) = 5 y 2 + 4:
i) Find the profit maximizing output and price, and calculate the monopolist's profits.
ii) Now consider the case in which the monopolist has now another plant with the cost structure  c 2( y 2) = 10 y 2. How much will the monopolist produce in each plant, what is the price, and the total profits of the monopoly?
iii) Now suppose there is a technological change in the first plant and it has the following cost function:  c 1 ( y 1) = 2 y 1. How much will the monopolist produce in each plant and what is the price?

To be solved step by step

I have only 20 mins. for this to be answered please help

Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2019, the first year of operations, Jackson produced 5,700 tons of plastic and sold 4,275 tons. In 2020, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 18% of the sales price of units produced, variable selling expenses were 9% of the selling price of units sold, fixed manufacturing costs were $3,762,000, and fixed administrative expenses were $550,000.

(1). Prepare income statements for each year using variable costing.

(2). Prepare income statements for each year using absorption costing.

(3). Reconcile the differences each year in net income under the two costing approaches.

Giant Film Company just paid a quarterly dividend of $3 per share yesterday, and has a required return of 12 percent per year. Please answer the following questions:

a. If Giant Film’s future dividends are expected to stay at $3 per quarter forever, what should Giant Film’s current stock price be?

b. If Giant Film’s future dividends are expected to grow at 2% per quarter from now on, and its EPS will stay at $6 per quarter in the foreseeable future, what’s Giant Film’s current stock price?

c. If Giant Film’s future dividends are expected to grow at 10% in the first quarter, 20% in the second quarter, and then turn into a 2% per quarter constant growth rate. What’s Giant Film’s current stock price?

Exercise 8-31 Algo The monthly closing stock prices (rounded to the nearest dollar) for Panera Bread Co. for the first six months of 2010 are reported in the following table. [You may find it useful to reference the t table.] Months Closing Stock Price January 145 February 144 March 149 April 146 May 150 June 140 Source: http://finance.yahoo.com.

a. Calculate the sample mean and the sample standard deviation. (Round intermediate calculations to at least 4 decimal places and "Sample mean" and "Sample standard deviation" to 2 decimal places.)

b. Calculate the 90% confidence interval for the mean stock price of Panera Bread Co., assuming that the stock price is normally distributed. (Round "t" value to 3 decimal places and final answers to 2 decimal places.)

5. (5 pts) Consider a 125,000 euro futures contract in which the current future price is $1.232 per euro. The initial margin requirement is $2,310 per contract, and the maintenance margin requirement is $2,100 per contract. You go short 10 contracts and meet all margin calls but do not withdraw any excess margin. Assume that on the first day, the contract is established at the settlement price, so there is no mark-to-market gain or loss on that day.

b. How much are your total gains or losses by the end of day 4?

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 30 Direct labor $ 15 Variable manufacturing overhead $ 4 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 510,000 Fixed selling and administrative expenses $ 140,000 During its first year of operations, O’Brien produced 98,000 units and sold 74,000 units. During its second year of operations, it produced 82,000 units and sold 101,000 units. In its third year, O’Brien produced 81,000 units and sold 76,000 units. The selling price of the company’s product is $73 per unit. 3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3.

Inner Secret T Shirt Company produces and sells one product. The following information pertains to each of the company’s first three years of operations:

Variable costs per unit:     

Manufacturing:     

Direct materials   $   26

Direct labor   $   18

Variable manufacturing overhead   $   5

Variable selling and administrative   $   1

Fixed costs per year:     

Fixed manufacturing overhead   $   540,000

Fixed selling and administrative expenses   $   100,000

During its first year of operations, O’Brien produced 94,000 units and sold 75,000 units. During its second year of operations, it produced 83,000 units and sold 97,000 units. In its third year, O’Brien produced 82,000 units and sold 77,000 units. The selling price of the company’s product is $80 per unit.

Required:

1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.