John really likes listening to music. His preferences for vintage records (?1) and music downloads (?2) can be represented by the utility function ? = ?1?2. Initially, the price of a vintage record was $10, but it increased to $20 due to a new trend toward collecting vinyl. The price of a music download is $4 and John’s income is $240.

1. How would you describe John’s preferences for vintage records and music downloads?

2. The increase in the price of vintage records will affect John’s consumption of vintage records. Let’s use the Slutsky equation to decompose the change in quantity demanded. First, by how much will John change his consumption of vintage records due to the substitution effect (i.e. change in relative prices)?

3. By how much will John change his consumption of vintage records due to the income effect (i.e. change in purchasing power)? Are vintage records a normal or inferior good? Explain in one sentence.

4. What is the total change in John’s consumption of vintage records as the price increased from $10 to $20? Are vintage records an ordinary or Giffen good? Explain in one sentence.

THESE 3 QUESTIONS IM NOT SURE OF PLEASE ANSWER THEM IN 150 WORDS FOR EACH QUESTION. THANK YOU!

1.

First degree – the seller must know the absolute maximum price that every consumer is willing to pay.

Second degree – the price of the good or service varies according to quantity demanded.

Third degree – the price of the good or service varies by attributes such as location, age, sex, and economic status.

Give an example of price discrimination. If you can, try to find some from each of the above degrees within the same industry.  

2.

How might a professional sports team be considered a monopoly when there are other such teams in the nation?

Then, give your own example of a monopoly. Be sure to explain and justify why you believe they are a monopoly.

3.

Discuss what public-utility regulatory agencies ultimate goals are. What are they attempting to accomplish through their actions? Are they justified in doing so? Some guiding questions are:

Is there such as thing as a good monopoly?

How to they try to eliminate the misallocation of resources that results from monopoly?

Are fair-return policies enough/effective?

Pricing

Hamburg AG produces a number of pocket computer products. It is an established company with a good reputation that has built on well-engineered, reliable and good-quality products. It is currently developing a product called Techstar and has spend € 1.5 million on development so far. It now has to decide whether it should proceed further and launch the product in one year ́s time.

If Hamburg AG decides to continue with the project, it will incur further development costs of € 750.000 straight away. Hamburg AG expects that it could see Techstar for three years before the product becomes out of date (i.e. it is expected to be 3 years on the market).

It is estimated that the Techstars produced and sold in the first year would cost an average of € 675 each unit, for production, marketing and distribution costs. Further fixed costs associated with the project are expected to amount € 0.9 million (cash out flow) for each year the product is in production.

Because of the cost estimates, the Chief Executive expected the selling price to be in the region of € 950. However, the Marketing Director is against the pricing strategy; he says that this price is far too high for this type of product and that he could sell only 6,000 units each year at this price. He suggests a different strategy: setting a price of € 625, at which price he expects sales to be 15,000 units each year.

a) The Chief Executive has asked you to help sort out the pricing dilemma. Prepare calculations that demonstrate which of the two suggestions is the better pricing strategy. Should the product be produced? Neglect the company ́s cost of capital.

b) Hamburg AG found from past experience that in the second year the totals variable costs are 20% less of the first year ́s costs because of experience curve effects. In the third year the total variable costs are 20% less than the variable costs of the second year. How would the calculations (and the recommendation?) change? (6 points)

The solution should be written in Java.

Your POSmain program should take three file names from command line arguments. The first file contains a list of products and their prices; the second and third files are lists of items in two shopping carts of two customers. The POSmain program should first read the price file, then read each of the cart files to load a list of items in a shopping cart and store them in a ShoppingCart objects. The price file may contain a variable number of products and the cart files may contain a variable number of items.
POSmain then will create a CashRegister object by passing the price list to it. The POSmain program then will use the CashRegister object to scan items in a cart and print a receipt for each shopping cart one by one. At last, POSmain will use the CashRegister object to print a report for the day.
The students of CSIT111 and CSIT811 will print a different report for the day, which requires different design of your CashRegister class.

The output should be like this:-

One customer is checking out ...
========================================
Product Price Qty Subtotal
----------------------------------------
Bed $499.99 2 $999.98
Char $45.49 4 $181.96
TV $999.99 1 $999.99
Table $199.0 2 $398.0
-------------------------
Total $2579.93
========================================
One customer is checking out ...
========================================
Product Price Qty Subtotal
----------------------------------------
Bread $1.75 2 $3.5
Butter $2.84 1 $2.84
Ham $2.5 1 $2.5
Lettuce $1.0 1 $1.0
Milk $3.0 2 $6.0
Onions $0.54 3 $1.62
Tomato $0.76 5 $3.8
-------------------------
Total $21.26
========================================
Report for the day
========================================
Number of customers: 2
Total sale: $2601.19
List of products sold:
----------------------------------------
Product Qty
----------------------------------------
Bed 2
Bread 2
Butter 1
Char 4
Ham 1
Lettuce 1
Programming Fundamentals - 3/4 -
Milk 2
Onions 3
TV 1
Table 2
Tomato 5

A monopoly has the cost function c(y)=10y+100, and is facing a market demand D(p)=100-2p.

1. What is the inverse demand function, p(y)? Having profits be π = p(y)∙y – c(y), what is the profit maximizing output level? What is the corresponding market price?

2. Calculate the monopolist’s profit and producer surplus. What is the consumer surplus? What is the deadweight loss?

3. The government imposes a production tax, t_P=10, so that the new cost function is c(y)=(10+t_P)y+100. What happens to y and p? What happens to the firm’s profit and producer surplus? What happens to consumer surplus and the deadweight loss? How much is tax revenue?

4. The government imposes instead a lump sum tax, T=300, so that the new cost function is c(y)=10y+100+T. What happens to y and p? What happens to the firm’s profit and producer surplus? What happens to consumer surplus and the deadweight loss?

5. The government imposes instead a sales tax, t_S=25%, so that the new demand function is D(p)=100-2p(1+t_S). What happens to y and p? What happens to the firm’s profit and producer surplus? What happens to consumer surplus and the deadweight loss? How much is tax revenue?

6. The government imposes instead a profit tax, τ=40%, so that the new profit function is π=(1- τ)[p(y)∙y–c(y)]. What happens to y and p? What happens to the firm’s profit and producer surplus? What happens to consumer surplus and the deadweight loss? How much is tax revenue?

7. The government decides instead to subsidize production with a subsidy, s = 10, so that the new cost function is c(y)=(10-s)y+100. What happens to y and p? What happens to the firm’s profit and producer surplus? What happens to consumer surplus and the deadweight loss? How much is tax revenue?

Java homework problem:

I need the code to be able to have a message if I type in a letter instead of a number. For example, " Please input only numbers". Then, I should be able to go back and type a number.

import java.awt.event.ActionEvent;
import java.awt.event.ActionListener;

import javax.swing.JButton;
import javax.swing.JFrame;
import javax.swing.JLabel;
import javax.swing.JPanel;
import javax.swing.JTextField;

public class LoginGui {
   static JFrame frame = new JFrame("JFrame Example");

   public static void main(String s[]) {
       JPanel panel = new JPanel();
       panel.setLayout(null);
       final JLabel label3 = new JLabel("Adult ticket $50.Children ticket $25");
       label3.setBounds(150, 15, 500, 30);
       JLabel label1 = new JLabel("Enter the number of adult ticket: ");
       label1.setBounds(200, 50, 300, 30);

       final JTextField adult = new JTextField(10);
       adult.setBounds(400, 50, 100, 30);

       JLabel label2 = new JLabel("Enter the number of children ticket: ");
       label2.setBounds(200, 100, 250, 30);
       // password field
       final JTextField children = new JTextField(10);
       children.setBounds(400, 100, 100, 30);

       JButton login = new JButton();
       login.setText("Calculate total cost");
       login.setBounds(200, 150, 250, 20);

       JLabel total = new JLabel("Total Price: ");
       total.setBounds(200, 200, 300, 30);

       final JTextField totalPrice = new JTextField(10);
       totalPrice.setBounds(400, 200, 100, 30);
       totalPrice.setEditable(false);

       JButton exit = new JButton();
       exit.setText("Exit");
       exit.setBounds(320, 150, 100, 20);

       login.addActionListener(new ActionListener() {

           @Override
           public void actionPerformed(ActionEvent aE) {
               String a = adult.getText();
               String c = children.getText();
               int ad = 0;
               if (a.trim().length() != 0)
                   ad = Integer.parseInt(a);
               int ac = 0;
               if (c.trim().length() != 0)
                   ac = Integer.parseInt(c);
               totalPrice.setText((ac * 25 + ad * 50) + "");

           }
       });

       panel.add(label1);
       panel.add(label2);
       panel.add(label3);
       panel.add(adult);
       panel.add(children);
       panel.add(login);
       panel.add(exit);
       panel.add(totalPrice);
       panel.add(total);
       frame.add(panel);

       frame.setSize(600, 300);
       frame.setLocationRelativeTo(null);
       frame.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
       frame.setVisible(true);
   }
}

The price of a car you are interested in buying is $93.75k. You negotiate a 6-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1.2k per month for the following 5 years, with a balloon payment at the end to cover the remaining principal on the loan. The annual percentage rate (APR) on the loan with monthly compounding is 5%. What will be the amount of the balloon payment 6 years from now?

Note: The term “k” is used to represent thousands (× $1,000).

Required: Suppose the loan has initially been paid in full (without a balance due at maturity), the amount would have totaled $37k. Calculate the absolute percentage difference between the fully amortized loan and the balloon payment.

Rooster, Inc., has 9 million shares of common stock outstanding. The current share price is $55, and the book value per share is $6. Rooster also has two bond issues outstanding that both originally sold at par. The first bond issue has a face value of $90 million, has an 8 percent coupon, and sells for 104 percent of par. The second issue has a face value of $50 million, has a 7.5 percent coupon, and sells for 106 percent of par. The first issue matures in 10 years, the second in 6 years.

a. What are Rooster’s capital structure weights on a book value basis?

b. What are Rooster’s capital structure weights on a market value basis?

Goal Corporation issued $900,000 face value 7 percent 5-year bonds on 1/1/2021. The bonds pay interest semiannually and were sold to yield 8 percent. The bonds were purchased by Shot Company.

a. What is the issuance price of the bond? ___________________

b. Prepare the entry that Goal will make to record the issuance of the bonds.

c. Prepare the entry that Goal will make to record the first interest payment.

d. Prepare the entry that Goal will make to record the second interest payment.

e. Prepare the entry that Shot will make to record the purchase of the bonds.

f. Prepare the entry that Shot will make to record the first interest payment.

g. Record the entry that Shot will make to record the retirement of the bond at its maturity date.