1. Assume that all firms are identical and operate in a market that is characterized by perfect competition. The market demand is given by Q^D = 3000 − 50 P , the market supply is given by Q^S = 550 P, the firm’s total cost function is given by   C ( q ) = 500 + q^2/100.

a. (5) Find the market equilibrium quantity, the market equilibrium price, the output supplied by a single firm, the profit of each firm, and the number of firms in the industry.
b. (5) Will there be entry into or exit from the industry in the long run? Explain. How will the market equilibrium be affected by entry and exit?
c. (5) What is the lowest price at which each firm would sell its output in the long run? Is profit positive, negative, or zero at this price? Explain.
d. (5) Suppose that all of the firm’s fixed costs are sunk, what is the lowest price at which each firm would sell its output in the short run? Is profit positive, negative, or zero at this price? Explain.
e. (5) Suppose that a tax of $1 is assessed for every unit of output and is imposed on only one firm in the industry. Find the new profit maximizing output for the firm. Now suppose that the tax of $1 is imposed on every firm in the industry. Find the new profit maximizing output for the firm. Is the effect of the tax on the firm’s output larger when the tax is imposed only on one firm or when the tax is imposed on every firm? Explain.

1. Assume that all firms are identical and operate in a market that is characterized by perfect competition. The market demand is given by Q D = 3000 − 5 P , the market supply is given by Q S = 550 P, the firm’s total cost function is given by C ( q ) = 500 + q 2 100.

a. (5) Find the market equilibrium quantity, the market equilibrium price, the output supplied by a single firm, the profit of each firm, and the number of firms in the industry.
b. (5) Will there be entry into or exit from the industry in the long run? Explain. How will the market equilibrium be affected by entry and exit?
c. (5) What is the lowest price at which each firm would sell its output in the long run? Is profit positive, negative, or zero at this price? Explain.
d. (5) Suppose that all of the firm’s fixed costs are sunk, what is the lowest price at which each firm would sell its output in the short run? Is profit positive, negative, or zero at this price? Explain.
e. (5) Suppose that a tax of $1 is assessed for every unit of output and is imposed on only one firm in the industry. Find the new profit maximizing output for the firm. Now suppose that the tax of $1 is imposed on every firm in the industry. Find the new profit maximizing output for the firm. Is the effect of the tax on the firm’s output larger when the tax is imposed only on one firm or when the tax is imposed on every firm? Explain.

QUESTION 1

1. Suppose two people, Jack and Jill, controlled the market and had a marginal cost of $0. If they could successfully collude with each other, how much water would each produce and what would be the price of water?

   	A.	Each would produce 20 gallons and the price would be $100
   	B.	Each would produce 30 gallons and the price would be $60
   	C.	Each would produce 40 gallons and the price would be $40
   	D.	Each would produce 60 gallons and the price would be $60

QUESTION 2

1. Imagine that Jack and Jill are players in a game. They can choose to produce either 30 gallons of water or 40. Do either of them have a dominant strategy?

   	A.	No, neither of them have a dominant strategy
   	B.	Yes, only Jack has a dominant strategy
   	C.	Yes, only Jill has a dominant strategy
   	D.	Yes, both Jack and Jill have dominant strategies

QUESTION 3

1. Does their game have a Nash equilibrium? If so, what is it?

   	A.	No, there's no Nash equilibrium
   	B.	Yes, it's where Jack and Jill both produce 30 gallons.
   	C.	Yes, it's where Jack and Jill both produce 40 gallons.
   	D.	Yes, it's where Jack produces 40 gallons and Jill produces 30.

Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company’s master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 4.0 hours to 3.75 hours.

Labor-related costs include pension contributions of $1.05 per hour, workers’ compensation insurance of $0.75 per hour, employee medical insurance of $3 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $22.00 per hour on April 1, 20x1. Management expects to have 19,000 frames on hand at December 31, 20x0, and has a policy of carrying an end-of-month inventory of 100 percent of the following month’s sales plus 40 percent of the second following month’s sales.

These and other data compiled by Demarest are summarized in the following table.

3. Prepare a production overhead budget for each month and for the first quarter.

Prepare a production overhead budget for each month and for the first quarter.
SPIFFY SHADES CORPORATION - Production Overhead Budget - For the First Quarter of 2001

(Month) January February March Quarter
Shipping and handling
Purchasing, material handling, and inspection
Other overhead
Total production overhead

SDES C++

The code is not working currently I know the functions are correct but the original plaintext should match the "ciphertext after" when inputting 4

#include <iostream>
#include <iomanip>
#include <string>
#include <stdlib.h>
#include <stdio.h>
#include <cstdlib>
#include <time.h>
#include <windows.h>

using namespace std;
//function prototypes
void splitString(string &x, string &y, string &original);
void expansionFunction(string &input);
string XORstring(string& str1, string& str2);
string getSBOXValue(string arr[][8], string val);
int binaryToDecimal(int n);
string generateKey();
string findKey(string Key, int round);
string Encryption(string &plaintext, string key);
string Decryption(string& cipher, string key);

int main()
{
   string plaintext = "011100100110", key = "010011001";
   cout << "SDES Encryption|\n---------------|\n";
   cout << "Original Plaintext = " << plaintext;
   cout << "\nOriginal Key" << setw(9) <<" = " << key << endl;

  
   //split string int left and right
   string left, right;
  
   splitString(left, right, plaintext);
  
   cout << endl << "L0 = " << left << endl << "R0 = " << right << endl;
   cout << "\nL1 = R0" << endl;
   string l1 = right; //assign l1 to be r0

   //find r1
   //first expand r0
   string eRight = right;
   expansionFunction(eRight);
   //reduce key value by 1
   key.resize(key.size() - 1);
  
   cout << "\nXOR\n";
   cout << "E(Right) = " << eRight << endl;
   cout << "K1"<< setw(9) <<" = " << key << endl;
   cout << "--------------------------" << endl;
  
   // E(R0) xor k1
   string XORresult = XORstring(eRight, key);
   cout << setw(19) << XORresult;

   //split string into s1 and s2
   string S1BOX[2][8] = {"101","010","001","110","011","100","111","000","001","100","110","010","000","111","101","011"};
   string S2BOX[2][8] = {"100","000","110","101","111","001","011","010","101","011","000","111","110","010","001","100"};
  

   string s1, s2;
   splitString(s1, s2, XORresult);
  
   string s1result = getSBOXValue(S1BOX, s1);
   string s2result = getSBOXValue(S2BOX, s2);
   cout << "\nS1 = " << s1 << " = " << s1result << endl << "S2 = " << s2 << " = " << s2result << endl;
   string functionResult = s1result + s2result;
   cout << endl << "Result from SBOX's is = " << functionResult << endl;
   cout << "L0 XOR f(R0,K1) = " << XORstring(left, functionResult) << "(R1)\n";

   string ciphertext = right + XORstring(left, functionResult);
   cout << "\nCiphertext(L1R1) = " << ciphertext << endl;

   cout << "----------------------------------------------------------------------------------------\n" << endl;
   int rounds;
   cout << "Round SDES\n";
   key = generateKey();
   cout << endl;
   string saveKey = key;
   plaintext = "011100100110";
   cout << "Random Key = " << key << endl;
   cout << "Plaintext = " << plaintext << endl;
  
   cout << "\nSelect number of SDES rounds\n-> ";
   cin >> rounds;
   cout << endl;
   cout << "Plaintext = " << plaintext << endl << endl;
  
   for (int i = 0; i < rounds;   i++)
   {
       key = findKey(key, i+1);
       plaintext = Encryption(plaintext, key);
       cout << "Round " << i+1 << " Ciphertext = " << plaintext << endl;
   }
   ciphertext = "";
   ciphertext.append(plaintext, 6, 6);
   ciphertext.append(plaintext, 0, 6);

   cout << endl << "Ciphertext after " << rounds << " rounds: " << ciphertext << endl << endl;
   cout << "Proof by decryption:\n\n" << "Ciphertext: " << ciphertext << endl << endl;

   string d;
   d.append(ciphertext, 6, 6);
   d.append(ciphertext, 0, 6);
   for (int j = rounds; j > 0; j--)
   {
       key = findKey(saveKey, j);
       d = Decryption(d, key);
       if (j != 1)
           cout << "Round " << j << " Ciphertext = " << d << endl;
       else if (j == 1)
           cout << "\nSucceeding Plaintext is: " << d << endl;
   }  

return 0;
}
//function definitions
void splitString(string &x, string &y, string &original)
{
       x = original.substr(0, original.length() / 2);
       y = original.substr(original.length() / 2);
}

void expansionFunction(string &input)
{
   char temp;
   //add two more letters to meet size requirement
   input.append(input, 4, 2);
   temp = input[3];
   input[5] = input[2];
   input[4] = temp;
   input[3] = input[2];
   input[2] = temp;
}

string XORstring(string& str1, string& str2)
{
   string temp = str2;
   for (int i = 0; i < str2.length(); i++)
   {
       temp[i] = (str1[i] ^ str2[i]) + '0';
   }
   return temp;
  
}

string getSBOXValue(string arr[][8], string val)
{
   int column;
   if (val[0] == '0')
   {
       column = stoi(val.substr(1, val.length()));
       column = binaryToDecimal(column);
       for (int i = 0; i < 8; i++)
           if (i == column)
               return arr[0][i];
   }
   else
   {
       column = stoi(val.substr(1, val.length()));
       column = binaryToDecimal(column);
       for (int i = 0; i < 8; i++)
           if (i == column)
               return arr[1][i];
   }
              
}
int binaryToDecimal(int n)
{
   int decimal = 0;

   // Initializing base value to 1, i.e 2^0
   int base = 1;

   int temp = n;
   while (temp) {
       int last = temp % 10;
       temp = temp / 10;
       decimal += last * base;
       base = base * 2;
   }

   return decimal;
}
string generateKey()
{
   string randomKey;
   string binary[2] = { "0","1" };
   randomKey.reserve(8);
   srand(time(0));
   cout << "Generating KEY...\n";
   for (int i = 0; i < 9; i++)
   {
       randomKey += binary[rand()%2];
   }
   return randomKey;

}
string findKey(string Key, int round)
{
   string temp;
   //Get the key for the round
   if (round == 1)
       temp.append(Key, 0, 8);
   else if (round == 2)
       temp.append(Key, 1, 8);
   else if (round == 3)
   {
       temp.append(Key, 2, 7);
       temp.append(Key, 0, 1);
   }
   else if (round == 4)
   {
       temp.append(Key, 3, 6);
       temp.append(Key, 0, 2);
   }
   return temp;
}

string Encryption(string &plaintext, string key)
   {
   string left, right, eRight, result, s1, s2, Ln, Rn;
   string S1BOX[2][8] = { "101","010","001","110","011","100","111","000","001","100","110","010","000","111","101","011" };
   string S2BOX[2][8] = { "100","000","110","101","111","001","011","010","101","011","000","111","110","010","001","100" };
  
   splitString(left, right, plaintext);

   Ln = right; // Ln = Rn - 1
   eRight = right;
   //use expansion on right side
   expansionFunction(eRight);
   result = XORstring(eRight, key);
   splitString(s1, s2, result);

   string s1result = getSBOXValue(S1BOX, s1);
   string s2result = getSBOXValue(S2BOX, s2);

   string functionResult = s1result + s2result;
   Rn = XORstring(left, functionResult);
   return Ln + Rn; //L1R2
}

string Decryption(string& cipher, string key)
{
   string Left, Right, eRight, Ln, Rn, result, s1, s2;
   string S1BOX[2][8] = { "101","010","001","110","011","100","111","000","001","100","110","010","000","111","101","011" };
   string S2BOX[2][8] = { "100","000","110","101","111","001","011","010","101","011","000","111","110","010","001","100" };
   //find key
   splitString(Left, Right, cipher);
   Rn = Left;
   eRight = Rn;
   expansionFunction(eRight);
   result = XORstring(eRight, key);
   splitString(s1, s2, result);
   string s1result = getSBOXValue(S1BOX, s1);
   string s2result = getSBOXValue(S2BOX, s2);

   string functionResult = s1result + s2result;
   Ln = XORstring(Right, functionResult);
   return Ln + Rn;
}

1). During January of 2007, the average price of regular unleaded gasoline in Oakland, California increased 11.0 percent. If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by.

• 6.46 percent
• 8.46 percent
• 1.43 percent
• 4.31 percent
• 0.16 percent

2). If a 4 percent change in the price of a good leads to a 3 percent change in quantity demanded, the price elasticity of demand equals

• 1.33.
• 4.00.
• 0.75.
• 3.44.
• None of the above answers are correct.

3). The price elasticity of demand is a measure of

• The equilibrium price of a product.
• Buyers’ responsiveness to changes in the price of a product.
• Whether a product is a substitute or a complement.
• How much a change in demand affects the equilibrium price.
• The amount of a product purchased when income increases.

4). If the price of a scooter increases by 20 percent and the quantity supplied of scooters increases by 30 percent, then the price elasticity of supply is

• 0.66.
• 0.20.
• 1.5.
• .30.

5). Suppose the New Orleans Saints lowers ticket prices by 13 percent and as a result the quantity of tickets demanded increases by 21 percent. This response means that the price elasticity of demand for Saints tickets is

• Elastic.
• Perfectly elastic.
• Perfectly inelastic.
• Inelastic.
• Unit elastic.

6). Total revenue equals

• Price.
• Profit – cost.
• Quantity sold -cost
• Cost x price.
• Price x quantity sold.

7). Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are demanded. If the price of barley rises 14% and quantity demanded decreases by 23% what is the price elasticity of demand for barley?

• 0.61.
• 1.64.
• 0.14.
• 0.23.

8).

A minimum wage is an example of a

• Price ceiling.
• Price floor.
• Market wage.

10). If the demand for insulin is inelastic, an increase in insulin prices leads to

• Less total revenue for insulin makers.
• Total revenue probably changes but we need more information about the change in total expenditures on insulin to determine if the total revenue rises, falls, or stays the same.
• First a decrease, then an increase in total revenue for insulin makers.
• More total revenue for insulin makers.
• No change in total revenue for insulin makers.

Answer all please

1.A medical clinic is worth 96,266 dollars. It is expected to produce equal monthly cash flows of 9,716 dollars for 8 months with the first monthly cash flow expected in 1 month. The medical clinic is also expected to make an extra cash flow of 25,331 dollars in 8 months. What is the monthly cost of capital for the medical clinic? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

2.

Bryna wants to buy a car that is available at two dealerships. The price of the car is the same at both dealerships. Best Buggies would let her make quarterly payments of $2,240 for 5 years at a quarterly interest rate of 3.72 percent. Her first payment to Best Buggies would be due in 3 months. If California Cars would let her make equal monthly payments of $935 for 4 years and if her first payment to California Cars would be today, then what is the monthly interest rate that Bryna would be charged by California Cars? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

3.

Mary Jo wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 2,046.62 dollars for 8 years at a quarterly interest rate of 2.93 percent. Her first payment to Middlefield Motors would be due immediately. If Fairfax Boats would let her make equal monthly payments of 1,990.58 for 2 years and if her first payment to Fairfax Boats would be in 1 month, then what is the monthly interest rate that Mary Jo would be charged by Fairfax Boats? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Roster Pte Ltd issued 100 million of 11-year bonds with a 9.5% coupon payable annually. This bond was issued a year ago. The first coupon payment has just been paid. The bonds are callable at 105 beginning today. Floatation costs on that issue were $1 million. Roster pte has 38% marginal tax rate. Roster Pte is planning to call the bonds and refinance at current rates. The following 10 years alternatives exist: (show all calculations)

a. 100 million public issue of 8% annual coupon bonds. Floatation costs would be one million.

b. 100 million private placement with 8% semi-annual coupons with a placement fee of 500000.

(Call premiums and interest payments are tax deductible but the frontend fee and floatation cost must be capitalized and amortized over the life of the bond.)

1. What will be the effective cost of raising funds from the public bond issue using IRR ?

2. Effective cost of raising funds from private placement of debt.?

3. If the bonds are called, which of two refinancing options is more preferable and why?

4. What's the effective after-tax cost of refinancing that would make Roster Pte indifferent calling the bonds and leaving them as it is?

5. Should the bonds be called in? why or why not?