1. Tim has preferences over consumption in period 0 and 1 of the form U(x, y) = xy, where x and y are Tim’s consumption in period 0 and 1 respectively. He has $15,000 in the bank now and is trying to decide between two different investment opportunities, A and B. A: invest $10,000 in period 0 and receive $20,000 in period 1. B: invest $2,000 in period 0 and receive $6,000 in period

1.

a. If Tim can borrow and lend at a rate of interest of 50 percent, which investment opportunity will he choose?
b. Given your answer in (a), how much will he consume in each period if the price of the good is $1 in both periods?

c. Given your answer in (a), how much will he consume in each period if the price in period 0 is $1 and the inflation is 20%?

d. Assuming that the price of consumption is $1 in both periods and the borrowing rate is 50% and the lending rate is 100%. Given your answer in (a), how much will he consume in each period？

Q4. Now consider collusion between n price-setting firms which produce a homogenous good. The monopoly profit in this industry is 100. Marginal cost is 2 for each firm and there are no fixed costs. The n firms collude by setting the monopoly price and dividing the monopoly profit evenly between them. a. When the game is played once, show that there is a profitable unilateral deviation for each firm from this collusive agreement. b. Now suppose that the firms interact repeatedly, with the probability of the game continuing each period being δ. Consider the following grim trigger strategies: for each firm, collude until one player deviates, then price at marginal cost forever. Show that these strategies constitute a Nash equilibrium of the repeated game if δ ≥ 1 − 1/n. [Hint: recallthat: x+δx+δ^2x+...= x/1-δ ] (5marks) c. Intuitively, why is a higher δ required to support collusion in the repeated game when the number of firms n is larger? (Remember to show all working)

Q4. Now consider collusion between n price-setting firms which produce a homogenous good. The monopoly profit in this industry is 100. Marginal cost is 2 for each firm and there are no fixed costs. The n firms collude by setting the monopoly price and dividing the monopoly profit evenly between them. a. When the game is played once, show that there is a profitable unilateral deviation for each firm from this collusive agreement. b. Now suppose that the firms interact repeatedly, with the probability of the game continuing each period being δ. Consider the following grim trigger strategies: for each firm, collude until one player deviates, then price at marginal cost forever. Show that these strategies constitute a Nash equilibrium of the repeated game if δ ≥ 1 − 1/n. [Hint: recallthat: x+δx+δ^2x+...= x/1-δ ] (5marks) c. Intuitively, why is a higher δ required to support collusion in the repeated game when the number of firms n is larger? (Remember to show all working)

On January 1, 2021, Johannesson&Johannesson had 480,000 common shares ($1 par) outstanding. These were originally sold for $30 per share, and 6,000 shares of 10% cumulative preferred stock ($100 par), convertible into 60,000 common shares.

On October 1, 2021, Johannesson&Johannesson issued and sold an additional 16,000 shares of common stock at $37. At December 31, 2021, there were 22,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44.

Net income was $620,000. The tax rate for the year was 25%.

Your task:
Please compute both the basic and the diluted EPS for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in thousands.)

Consumer Reports provided extensive testing and ratings for more than 100 HDTVs. An overall score, based primarily on picture quality, was developed for each model. In general, a higher overall score indicates better performance. The following (hypothetical) data show the price and overall score for the ten 42-inch plasma televisions (Consumer Report data slightly changed here):

Use the above data to develop and estimated regression equation and interpret the coefficients. Compute Coefficient of Determination and correlation coefficient and show their relation. Interpret the explanatory power of the model. Estimate the overall score for a 42-inch plasma television with a price of $3400. Finally, test the significance of the slope coefficient.

This is my java method that is suppose to take data from a file(String, String, Double, Int ) and load that data into an object array. This is what I have and when I try to display the contents of this array it prints a "@" then some numbers and letters. which is not the correct output. any help correcting my method would be much appreciated.

public void loadInventory(String fileName) {

String inFileName = fileName;

String id = null;

String name = null;

double price = 0;

int quantity = 0;

int count = 0;

try {

Scanner infile = new Scanner(new FileInputStream(inFileName));

count = 0;

while (infile.hasNext() && count < 100)

{

id = infile.next();

name = infile.next();

price = infile.nextDouble();

quantity = infile.nextInt();

Item newItemList = new Item(id, name, price, quantity);

itemList[count] = newItemList;

++count;

}//end of hasNext loop

infile.close();

}//end of try

catch (IOException ex)

{

count = -1;

System.out.printf("\nNow ya done goofed " + ex +"\n");

}//end of catch

}

Q 4: The 21,000-seat Air East Arena houses the local professional ice hockey, basketball, indoor soccer, and arena football teams as well as various trade shows, wrestling, and boxing matches, tractor pulls, and circuses. Arena vending annually sells large quantities of soft drinks and beer in plastic cups with the name of the arena and the various teams’ logos on them. The local container cup manufacturer that supplies the cups in boxes of 100 has offered arena management a discount price schedule for cups shown in table below. The annual demand for cups is 2.3 million, the annual carrying cost per box of cups is 5% of the price of the box of cups, and the ordering cost is $320. Determine the optimal order quantity, the length of the ordering cycle and total annual cost of the optimal ordering policy.

IBEX has hired you to analyze demand in 25 regional markets for a new Product Y, called Angelica Pickles. A statistical analysis of the demand in these markets shows (standard errors in parentheses):

QY = 250 - 10P + 6PX + 0.25A + 0.04I (100) (3) (2) (0.1) (0.15)

R2 = 90%

Standard Error of the Estimate = 75

Here, QY is the market demand for Product Y, P is the price of Y in dollars, A is dollars of advertising expenditures, PX is the average price in dollars of another (unidentified) product, and I is dollars of household income. In a typical market, the price of Y is $1,500, PX is $500, advertising expenditures are $50,000, and disposable income per household is $45,000. The numbers in parentheses are standard errors of the coefficients. Based on this information, do the following:

a. Calculate the expected level of demand for Y.

b. Indicate the range within which actual demand is expected to fall with 95% confidence.

c. Interpret R2.

d. Test the significance of Advertising (A), at α = 0.05.

Consider a monopoly firm facing a demand curve Q = 100 – P. This firm has fixed costs =$1000 and constant marginal cost =$20. Total costs are $1000 + $20Q and average costs are $1000/Q + $20.

a. What is the firm’s profit maximizing level of output? What price does it charge to sell this amount of output? How much profit does it make? What is consumer surplus at this level of output? Show your work.(8)

b. Suppose this firm was regulated by the government, and that the regulation required that the firm charge a price equal to marginal cost. Calculate the number of units demanded and profit at this level of output. Is this policy sustainable? Why or why not?(7)

c. As an alternative, consider a regulation that is meant to allow the firm to earn a “reasonable rate of return” for operating. After analyzing the firm’s costs, the regulator allows the firm to charge $36 per unit produced. Calculate quantity demanded and profit under this policy. Is this a sustainable price? Why or why not?(7)