Question 2. Suppose you are a consultant for a firm that is perfectly competitive. The firm is worried only about its policies in the short run. What would you recommend in terms of quantity changes (raise, cut, shut down or stay put) and price changes (raise, cut, stay put) in each of the following situations: a. [15 points] P $19 MC $14 AVC $20 b. [15 points] P S11MC S106 AVC $107 Notations/Abbreviations: P- price; MC-marginal cost; AVC- average variable cost ATC average total cost
In: Economics
5. Assuming the price level does not change, explain what happens if the leakages are less than injections and why?
13. Explain why the Classical Macro theory is a full-employment model and how it can incorporate deviations of the economic activity from the potential as well as explaining economic growth.
15. Evaluate critically: A change in any autonomous spending such as government and likely investment spending will not change the total spending, since thee expenditure changes will be counterbalanced in other components of the spending.
17. Explain the ineffectiveness of discretionary policy (monetary and fiscal policies including changes in taxes) in view of the classical theory.
In: Economics
Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for $1,035.28.
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price?
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
The bond's yield to maturity is blank%. (Round to two decimal places.)b. If the bond's yield to maturity changes to 9.4%APR, what will be the bond's price?The new price for the bond is $blank. (Round to the nearest cent.)
Please show all work in steps with explanation. thanks.
In: Finance
The Strasburg Company’s stock currently trades at $90 per share. Below is their partial balance sheet:
Common Stock (1,500,000 shares outstanding) 30,000,000
Retained Earnings 15,000,000
Total 45,000,000
a) The company is considering a 3 for 2 stock split. What will be the company’s stock price following the stock split? How many shares will be outstanding? Show any changes to the Balance sheet.
b) If instead, the company does a 7% stock dividend. What will be the company’s stock price following the stock dividend? How many shares will be outstanding? Show any changes to the Balance sheet.
In: Accounting
In: Economics
We are evaluating a project that costs $670,000, has a life of 5 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 59,000 units per year. Price per unit is $44, variable cost per unit is $24, and fixed costs are $760,000 per year. The tax rate is 23 percent and we require a return of 16 percent on this project.
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What is the sensitivity of NPV to changes in the sales figure? (Change)NPV/(change)Quantity What is the sensitivity of OCF to changes in the variable cost figure? (change)OCF/(Change)VC |
In: Finance
1. Have you, and/or a family member or friend, ever been prescribed a painkiller (opioid)?What concerns you the most about the opioid crisis (briefly explain)?
2. Do you feel that you are addicted to technology (be honest!)? Briefly explain why or why not. Also, identify and state any changes or issues you may be experiencing (based on the related videos in this module) due to your technology use.
3.How confident are you in being able to recognize the signs of an abusive relationship, and in taking steps to make positive/healthy changes for yourself or to help a loved one? Briefly discuss.
In: Psychology
Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typning not by hand writing, so that I can read and understand your answer clearly.thanks in advance/Ha
Q What measure can we use to empirically test the responsiveness of hours worked to changes in the wage rate? What can we conclude if this measure is positive, what if it is negative? What do we know empirically about individual’s responses to changes in the wage rate?
In: Economics
In: Economics
Question 3: Suppose federal government decreases taxes by (ΔT= 10 million) and increases government spending by (ΔG = 20 million), as a result output is changed by (ΔY).
a. (10 points) Assuming that the Federal reserve changes money supply such that the interest rate stays constant and marginal propensity to consume is MPC= 0.6. What is the change in output
(ΔY)? What is ΔY ? What is ΔY? Show your work. ΔT ΔG
b. (10 points) If the fed does not change money supply, do you expect the effect of the changes in tax and spending to be larger or smaller? Explain why?
In: Economics