The market demand curve is given by

p = 100 - Q

Two firms, A and B, are competing in the Cournot fashion. Both firms have the constant marginal cost of 70. Suppose firm A receives a new innovation which reduces its marginal cost to c. Find the cutoff value of c which makes this innovation "drastic".

How Does Digital Transformation Happen?

The Mastercard Case

Taking on Cash

“One of the biggest things we did was to redefine our competition. Once we got [that] right, then the vision of the company became very clear.”

Ajay Banga, CEO, Mastercard1

Although news headlines warn established companies that they must “disrupt or be disrupted”, the meaning of digital transformation continues to elude most business leaders. Does it mean becoming a social network like Facebook, an information platform like Google, a booking exchange like Uber, or a messaging service like WeChat? What examples exist of successful digital transformations, and what do firms do to make it happen?......................................

• Why did the share price of MC rise faster than that of Visa between 2010 and 2017 even though Visa reported $6.3 billion more in revenues in 2017?
• Is it possible to compete with cash?
• What in MC’s approach to innovation works well? What does not work well?
• Should the Smart Stickers concept go ahead or be stopped?
• What is an ‘adaptive ecosystem’ and why did MC adopt such a strategy?
• What role did adaptive ecosystems play in MC’s transformation?

Labor relations is becoming more diverse around the world because _________________________ play a much greater role in establishing employment conditions, most especially employee benefits outside the U.S.

What role does management play in contract negotiation for collective bargaining and how can management affect labor relations among employees?

What are some consequences associated with unfair labor practices and what are some ways that an organization can avoid unfair labor practices?

1. Consider a closed economy. Let the demand curve be P = 80 - Q and the supply curve be P = 20 + 2Q

a) Calculate the equilibrium price and equilibrium quantity.

b) Suppose the government sets a price ceiling of $55, what is the amount of excess demand or excess supply? (Write down excess demand or excess supply).

c) Suppose the government sets a production quota of 16 units, calculate the equilibrium price and equilibrium quantity.

2. Consider a closed economy. Let the demand curve be P = 80 - Q and the supply

curve be P = 20 + 2Q .

a) Suppose the government imposes an unit tax of $3/unit, calculate Q’, Pc, Ps and the tax

revenue

i) assuming the tax is imposed on the consumers

ii) assuming the tax is imposed on the producers.

3. (Consider a closed economy. Let the demand curve be P = 80 - Q and the supply curve be P = 20 + 2 Q .

Suppose the government imposes a sales tax of 10%, calculate Q’, Pc, and Ps

5. (6 points) Consider a closed economy. Let the demand curve be P  80Q and the supply

curve be P = 20 + 2Q .

Assume the economy is open to trade and Pw = $45

i) What is Pd ? What is the size of import?

ii) If an import tariff of $3/unit is imposed, what is Pd? What is the size of import? What

is the amount of tax revenue?

iii) Calculate the import-prohibitive tariff rate.

6. Solve for x and y

2x + 3y = 40

x + y = 19

7. let f(x) = 6x^3 + 3x^3 - 4x + 1, find f' (x)

The records for Botox Company show this data for 2010 and 2011:

- For 2010, Botox recorded a probable and estimable contingent liability due to a lawsuit. The range for the loss is $700,000 to $1,000,000. In 2011, the lawsuit is settled and Botox pays the actual loss of $850,000.

- Gross profit on a two-year construction contract begun in 2010 was recorded at $350,000 for 2010 and $600,000 for 2011. Cash received was $50,000 in 2010 and $500,000 in 2011.

- An officer of Botox Company passed away during 2011. Life insurance proceeds from a key officer life insurance policy was $200,000.

- Botox earns $600 per month on a municipal bond investment throughout 2010 and 2011.

- Machinery was acquired in January 2010 for $300,000. Straight-line depreciation over a five-year life (no salvage value) is used. For tax purposes, Tuesday may deduct 30% of the cost in 2010 and 25% of the cost in 2011, with the remainder of the cost being depreciated at 15% per year for the three years 2012-2014.

- Pretax financial income is $1,350,000 in 2010 and $1,500,000 in 2011. The tax rate is 25% for all years.

- Botox Company has no beginning balances of deferred tax assets or liabilities.

(a) Prepare a schedule for 2010 and 2011 starting with pretax financial income and compute taxable income.

(b) Prepare the journal entry to record income taxes for 2011.

Question 1: Consider a biallelic locus in an annual plant population. You observe the allele frequencies of allele A and allele T are equal to 0.4 and 0.6 in 2010, respectively.

A) Calculate the heterozygosity (H) of this locus in 2010, assuming the population mating is at random.

B) What is the expected frequency of allele A in 2020?

C) If the effective population size of this population is equal to 1,000, what is the expected heterozygosity of this locus in 2020?

D) If the effective population size is equal to 10 instead, what is the expected heterozygosity in 2020?

E) Based on your calculation, explain why genetic diversity is typically very low in endangered species.

Question 2: The observed heterozygosity (H) of a microsatellite is equal to 0.2% in a diploid population, and the mutation rate (per generation) at this microsatellite locus is equal to 2 x 10^-8.

A) Estimate the effective population size of this population.

B) The census population size of this population is 10⁶. Name two distinct processes that can contribute to the mismatch between the census population size and the effective population size.

Question 3: Suppose there are two annual plant species (A and B). Species A lives in a stable environment and has a constant census population size of 1,000. Species B lives in an unstable environment alternating between dry and wet years. Species B’s census population size is 200 in dry years and 1,800 in wet years. The frequencies of the dry and wet years are equal.

A) What is the effective population size of species A?

B) What is the effective population size of species B?

C) Assume the two species are similar in genome size and mutation rate, which species do you expect to have a higher level of heterozygosity? Why?

Question 4: Suppose a population has an effective population size of 50. In one generation, the average heterozygosity (averaged across loci) is reduced from 0.5 to 0.42. Is the population mating at random? Why?

Question 5: What is the effective population size in a population in which each breeding male controls a harem of 10 females, and the total population consists of 400 males and 400 females?

For Questions 1 through 6, please use the following information:

Princess Tools Inc (2009) [2010]

Sales (5800) [6500] Cogs (3670) [4038] Current liabilities (703) [1055] Depreciation (125) [122] Cash (270) [300] Accounts Receivable (1045) [1234] Net fixed Assets (3008) [3342] Inventory (1474) [1533] Interest (290) [200] Taxes (600) [680] Common stock (2400) [2600] Long term debt (2500) [1200] Dividends (100) [100]

1. What is the Cash Flow to Creditors for 2010?

2. What is the Cash Flow to Stock Holders for 2010?

3. What is the Cash flow From Assets for 2010?

4. What is the Operating Cash Flow for 2010?

5. What is the Net Capital Spending for 2010?

6. What is the Change in Net Working Capital for 2010?

a. Before, lockdown due to COVID-19, the market for Mobile phones and Headphones in Karachi are at equilibrium with an equilibrium price of Rs. 50,000 and equilibrium quantity of 20,000 in the mobile phone market, and equilibrium price of Rs.1500 and equilibrium quantity of 12,000 in Headphone market. After the reopening the markets, and business in Karachi, the price of cell phones has increased from Rs.50, 000 to Rs. 70,000. What will be the impact of the increase in the price of cell phones in both the markets? Explain by using graphs. Draw the graphs for both the markets separately, labeling everything clearly. (2 Marks, 50-150 words)

Consider a market for ice cream a normal good in Pakistan. You are supposed to analyze and discuss the effect on the equilibrium output and the price in the ice cream market in Pakistan for May, 2020 after the following changes (Other things held constant). In each case, explain your answer using supply and demand diagram. (4 Marks, 50-250 words) There has been a decrease in people’s income and a rise in the price of sugar (an input for making ice cream) in Pakistan during 2020 due to COVID-19 crisis simultaneously. News reports on May 5, 2020 claim that the consumption of ice cream is good for the health of patients with coronavirus. An improvement in technology that allows ice cream to be built at half the cost in Pakistan during 2020. The weather has changed suddenly and the temperature reached 40 °C in May 2020 in Pakistan

In January 2010, Construction Corp. contracted to construct a building for $ 6,000,000. Construction started in early 2010 and was completed in 2011. The following additional information is available:

                                                                                                   2010                       2011

       Costs incurred............................................................. $ 2,430,000            $ 2,700,000

       Estimated costs to complete............................................. 2,600,000                         —

       Collections during the year.............................................. 2,400,000               3,600,000

         Billings for the year …………………………………………..     2,800,000                3,200,000

Used the percentage-of-completion method.

Instructions

Under the contract-based approach,

a)     How much revenue should be reported for 2010 and 2011?

b)    Prepare all journal entries for 2010 and 2011 for this contract.