Members of a fishing village in New England have open access to a fishery (no one in the village explicitly owns the fishery). As long as an individual is a resident of the village, the individual can harvest as much fish as he wants from the fishery. All non‐residents are not allowed to fish. Given this scenario, is the equilibrium level of fishery harvest “too much” or “too little” or equal to the social optimum? Explain why this occurs. Support your answer by drawing the private and social, marginal cost and marginal benefit curves for fish. Identify the deadweight loss area if any exists.

Please give a detailed explanation for the answers. Thank you!

Suppose that an individual has a utility function of the form U = Y^½ where U is utility and Y is income.

                       a)   Calculate the utility level for Y values of $10,000, $40,000, $90,000, $160,000, and $250,000 and then plot the individual’s total utility function.

                        b)   This individual is currently earning $90,000 but has a 50-50 chance of earning either $40,000 or $160,000 in a new job.

                              i)   Calculate the expected income and utility from the new job.

                             ii)    Calculate and illustrate the risk premium .

                            iii)    Calculate the standard deviation.

PLEASE SHOW YOUR WORK ON HOW YOU GOT EACH ANSWER (INCLUDING STEP-BY-STEP CALCULATIONS)!

Determining Market-Based and Negotiated Transfer Prices

Clanahan, Inc., has a number of divisions around the world. Division US (in the United States) purchases a component from Division N (in the Netherlands). The component can be purchased externally for $25.10 each. The freight and insurance on the item amount to $2.50; however, commissions of $2.50 need not be paid.

Required:

Round your answers to the nearest cent.

1. Calculate the transfer price using the comparable uncontrolled price method.
$ per unit

2. Suppose that there is no outside market for the component that Division N transfers to Division US. Further assume that Division US sells the component for $31.20 and normally receives a 30 percent markup on cost of goods sold. Calculate the transfer price using the resale price method.
$ per unit

3. Now assume that there is no external market for the component transferred from Division N to Division US, and that the component is used in the manufacture of another product (i.e., it is not resold). Calculate the transfer price using the cost-plus method. Further assume that Division N’s manufacturing cost for the component is $18.10.
$ per unit

4. What if commissions avoided were $2.75 per unit?

What would be the comparable uncontrolled price?
$ per unit

What affect would this have on the resale price?

What affect would this have on the cost-plus price?

1. Perform a hypothesis test to examine the claim that the proportion of Hispanic/Latino people killed by police in the US is different from 16.4% (the 2014 demographic percentage for Hispanic/Latino Americans in the US population).

   1. Clearly state the null and alternative hypotheses to test, both as sentences and using symbols.

   2. Are the conditions (independent data and large enough sample size) met?

   3. Use technology to calculate the test statistic and the P-value.

   4. Make a sketch showing the distribution and the P-value.

   5. Using significance level 0.05, do you reject the null hypothesis or not?

   6. Communicate the conclusion of your hypothesis test in context.

      2. ​​​​​​​​​​​​​​Now perform a hypothesis test to examine the claim that the proportion of Black people killed by police in the US is different from 12.6% (the 2014 demographic percentage for Black Americans in the US population).

      1. Clearly state the null and alternative hypotheses to test, both as sentences and using symbols.

      2. Are the conditions (independent data and large enough sample size) met?

      3. ​​​​​​​Use technology to calculate the test statistic and the P-value.

      4. Make a sketch showing the distribution and the P-value.

      5. Using significance level 0.05, do you reject the null hypothesis or not?

      6. Communicate the conclusion of your hypothesis test in context.

Determining Market-Based and Negotiated Transfer Prices

Clanahan, Inc., has a number of divisions around the world. Division US (in the United States) purchases a component from Division N (in the Netherlands). The component can be purchased externally for $24.60 each. The freight and insurance on the item amount to $2.45; however, commissions of $2.60 need not be paid.

Required:

Round your answers to the nearest cent.

1. Calculate the transfer price using the comparable uncontrolled price method.
$ fill in the blank 1per unit

2. Suppose that there is no outside market for the component that Division N transfers to Division US. Further assume that Division US sells the component for $27.30 and normally receives a 30 percent markup on cost of goods sold. Calculate the transfer price using the resale price method.
$ fill in the blank 2per unit

3. Now assume that there is no external market for the component transferred from Division N to Division US, and that the component is used in the manufacture of another product (i.e., it is not resold). Calculate the transfer price using the cost-plus method. Further assume that Division N’s manufacturing cost for the component is $18.50.
$ fill in the blank 3per unit

4. What if commissions avoided were $2.90 per unit?

What would be the comparable uncontrolled price?
$ fill in the blank 4per unit

What affect would this have on the resale price?

What affect would this have on the cost-plus price?

Achievement gaps, or differences in performance, exist between boys and girls and men and women. These gaps may relate to athletic performance, career choice or success, academic achievement, or general psychological measures such as cognitive abilities. The question that contemporary research seeks to answer is why these gaps exist and what can be done to lessen or eliminate them. One category of variables that can affect achievement is individual differences such as self-concept or attitudes. For instance, girls or boys may exhibit less self-confidence in academic domains that have been traditionally associated with success by the other sex. It is important to note that although these differences appear to arise internally, from the self, the environment (e.g., messages individuals receive about gender stereotypes or experiences they have) also influences individual differences. Biological and environmental influences do not exist in isolation from one another. Strong evidence exists for the influence of social factors, especially input from parents and educators, in affecting performance and interest in various domains, which can have a widespread and long-lasting influence.

A difficulty in studying achievement gaps is that sex and gender are not the only identities that affect achievement. Economic status, ethnicity, culture, and other facets of identity may interface with sex and gender to create complex dynamics. You may notice in your text that many studies report gender achievement gaps in certain areas for one ethnic group but not another, or in one age group but not another.

For this Discussion, you will examine one gender achievement gap in depth by explaining the factors that influence it and how it affects individuals and societies. In your response posts, you will share strategies that could be used to mitigate the gaps your colleagues discussed.

To prepare

• Review the individual difference factors and social factors that contribute to achievement gaps (e.g., the math gap) between boys and girls and men and women.
• Identify one achievement gap that you have experienced or witnessed, either in the classroom or in the workplace. Then, identify at least one individual difference factor and one social factor that appear to contribute to this achievement gap. Consider how this achievement gap influences both the individual and society as a whole.

By Day 4

Post a description of the achievement gap and the influencing factors (individual and social) you identified and how they affect you personally. Explain how this achievement gap is supported by gender stereotyping or gender-related socialization. Finally, explain how these achievement gaps may have implications for both individuals and society as a whole

Top Cat Ltd is a company that supplies pet food to the dogs and cats of Australia. The company’s

marginal tax rate is 30%. The business is considering replacing a five-year-old manually operated

tuna processing machine that originally cost $100,000, presently has a book value of $50,000, and

could be sold for $120,000. This machine is currently being depreciated using the straight-line

method down to a terminal value of zero over the next five years, generating depreciation of

$10,000 per year. The fully automated replacement machine would cost $250,000, have a five-

year expected life over which it would be depreciated down using the straight-line method, and

have no salvage value at the end of five years.

Other information:

• The new machine would produce power savings before depreciation and taxes of $90,000 per year.
• Installation charge for the new machine is $10,000.
• Investment in inventories needs to be increased by $20,000.
• The old machine was operated by one operator who earned $30,000 per year.
• Annual cost of maintenance with the old machine was $10,000 per year.
• Annual cost of maintenance with the new machine is expected to be $40,000 per year.
• The required rate of return is 10% per year.
• A preliminary feasibility study incurred sunk costs of $5,000.

Required

a      Calculate the initial investment associated with the replacement project.

2. Calculate the incremental operating net cash inflows associated with the proposed replacement machine.

c      Determine the terminal cash flow expected from the proposed machine replacement.

d      Calculate the pay-back period of the proposed replacement machine.

e      Calculate the net present value of the proposed replacement machine.

Mobile Oil Company

The Mobile Oil company owns land in Alaska that might contain natural oil. The current value of the land is worth $90,000. However, if natural oil is present at the site, the oil will be worth $800,000. If the company decides to extract the oil from the land, the company will have to pay $100,000 in drilling costs.

Before drilling, the company has an option to carry out a seismic survey at the proposed drilling site. If they do not choose to carry out the survey, the company believes that there is a 0.25 probability that the proposed drilling site actually contains natural oil. However, if the company chooses to carry out the survey, the company will have to pay $30,000 for the test to be completed.

If the seismic survey is conducted, there are two possible outcomes. In other words, the survey will show either favorable or unfavorable result that natural oil is present. Based on historic records, if the results are favorable, the probability of hitting oil increases to 0.50. Even if the survey is unfavorable, there is still a chance that natural oil is present. However, if this is the case, the probability of hitting oil reduces to 0.14285.

If Mobile Oil decides not to drill, the company will sell their land at its current value. However, the land is considered worthless if the land is drilled. In addition, if the land has value (i.e. not drilled on), assume that the current value of the land does not change based on the results of the survey.

A summary of the financial parameters is shown below in Table 1, where costs are in terms of thousands of dollars.

Table 1: Financial parameters ($000)

Survey cost

-$30

Drilling cost

-$100

Current value

$90

Oil value

$800

Land value if drilled

$0

1. Develop a decision tree for this problem so that the expected monetary value can be evaluated.

a. HINT: Be sure to reference the tables that have been provided.

b. HINT: You will use the probabilities listed in Table 2 only once in order to develop a decision tree for this problem correctly.

2. Develop a formula that determines the highest expected monetary value that Mobil Oil can anticipate. In addition, develop a formula that will determine the course of action that Mobil Oil will take (i.e. Survey Do not Survey).

Please list out the excel formula's for each. I was not able to include the table for the data when I copied over.

Comments and Hints

Several probabilities are needed in order to construct a decision tree correctly. These probabilities are listed below in Table 2. However, to understand the probabilities that are given to you, please consider the following notation. For example, P(OP) is the probability of oil being present and P(OP|F) is the

probability of oil being present given (i.e. “|” ) that a favorable survey result was obtained. A

description of the abbreviations used in this problem is shown in the list below.

• OP Oil is Present

• ONP Oil is Not Present

• F Favorable Survey

• U Unfavorable Survey

The probabilities that are necessary to fill out the decision tree correctly are shown in the table below.

Table 2: Decision Tree Probabilities

P(OP) 0.25000%

P(ONP) 0.75000%

P(FS) 0.30000%

P(US) 0.70000%

P(OP|FS) 0.50000%

P(OP|US) 0.14285%

P(ONP|FS) 0.50000%

P(ONP|US) 0.85715%

The break-even point tells a company the number of units or the amount of revenue that it must sell or earn in order to pay for all of its costs. At this point, the company has neither profit nor loss.

Companies have two main types of costs: variable costs and fixed costs.

Variable costs are those costs that vary with the number of units produced. Examples of variable costs are direct labor, direct materials and overhead.

Fixed costs are those costs that a company incurs that do not depend on production. For example, most selling, and all administrative costs are fixed. A company must pay these costs even if it does not have any production activity.

The formulas for computing break-even follow:

B/E _{(# units)} = .     Fixed Cost              .

                         Contribution Margin

B/E _(Revenue) = .     Fixed Cost              .

                     Contribution Margin Ratio

If you will notice, both formulas use something called Contribution Margin. Contribution Margin represents the amount of revenue available after all variable costs have been paid for. It represents what is left over to pay for the fixed costs. The Contribution Margin ratio is the percentage Revenue that the Contribution Margin represents. In concept this is similar to Gross Profit.

In Cost Accounting Variable Costs are grouped together, and Fixed Costs are grouped together to create a variation of the traditional Income Statement. This variation is called a Contribution Margin Income Statement.

Read the following ethical dilemma.

Spillproof Company produces molded plastic cup holders for automobiles. Below is a summary of its Contribution Margin Income Statement from last year:

• Revenues: $5,750,000
• Variable costs: $3,850,000
• Fixed costs: $2,000,000
• Net Loss: ($100,000)

Because the company’s CEO is very concerned about the firm’s net losses, she asks the production manager if there are any ways in which they can reduce costs.

A few weeks later, the production manager returns with a proposal to reduce variable costs to 53% of revenues by lowering the cost estimates that the company uses for environmental clean-up costs. Some years the company has to perform waste clean-up and other years it does not. Either way, the company records this estimated cost as part of Variable Cost since it is based on the number of units produced.

The CEO likes the new projected net income and new break-even point, but is concerned that this change in the estimate will misrepresent the potential liability. The manager disagrees. He feels that the company will not be violating any laws by changing their estimate, and that there is only a possibility of environmental costs in the future anyway.

Requirements for your Main thread post:

1. Calculate the CURRENT breakeven revenues using the current Contribution Margin Income Statement information above.  Show us your work!
2. Re-calculate the breakeven revenues if variable costs are 53% of revenues.  Show us your work!
3. Calculate Spillproof’s projected Net Income/Loss.   Show us your work!
4. Discuss the following:

• 1. What are the ethical issues involved in this case? Explain your answer.
  2. Do you feel that the Production Manager is acting improperly or immorally? Why or why not? Please explain your response.
  3. What stakeholders would be affected if the CEO implemented the Production Managers suggestions? Why?
  4. What should the CEO do?

Technology that performs at the level of superhuman intelligence and beyond already exists. As Harris explained, even with a machine that performs at the level of humans or a group of researchers, it’ll still work exponentially faster than them. Harris says, describing a machine like that, that “in one week, it can perform 20,000 years of human-level intellectual work.” So of course, it’ll be convenient and amazing to have artificial intelligence find the cure to disease and find the answers to a question almost instantaneously compared to a group of researchers who may take months to do so, but when does AI reach the point where it’s so smart, that it’ll have no problem disregarding human’s lives to do what it wants to do?

Within the first two minutes of Sam Harris’ TED Talk on artificial intelligence, I was reminded of many of the episodes in Black Mirror where advanced technology in which we can currently only dream of becomes abused and causes chaos. Technology is constantly becoming more advanced, efficient, and intelligent. Undoubtedly, artificial intelligence will one day become so intelligent, it’ll have the ability to function independently of a human’s control. Without regulation, one day robot’s will start fixing all our economic issues and research questions. Human will be almost or basically useless and free to roam the earth doing whatever, just depending on robot’s to keep the world spinning. And what will stop robots from viewing us as “ants” and not hesitating to take us out if we are in their way? I agree that technology has brought us very far and I do think it should continue advancing whether it is to cure Alzheimers or just make our daily life more convenient, but when does AI become dangerously advanced? How do we decide when AI will threaten the human species? When do we decide to put a stop to it?