Recently, Quandl announced that they were purchased by NASDAQ. Both firms provide historic market data and other information about exchange transactions in equity and futures markets, so they offer substitute products. After the merger is completed, we should expect that the price of these market data products offered by the combined firm will:

To successfully adopt a price discrimination strategy, the seller must:

Which group is offered the lower price under a price discrimation scheme?

The remaining consumer surplus is zero under a successful first-degree price discrimination scheme.

True

False

In general, women's clothing items (e.g., running shoes) have higher prices than comparable products designed for men due to price discrimination. How do the clothing sellers prevent resale in these markets?

Which of the following claims is NOT true?

Using the Case Study below, answer the following questions

Case Study

Some of the largest economic fluctuations in the U.S. economy since 1970 have originated in the oil fields of the Middle East. Crude oil is a key input into the production of many goods and services, and much of the world’s oil comes from Saudi Arabia, Kuwait and other Middle Eastern countries. When some event (usually political in origin) reduces the supply of crude oil flowing from this region, the price of oil rises around the world. U.S. firms that produce gasoline, tires, and many other products experience rising costs, and they find it less profitable to supply their output of goods and services at any given price level. The first episode of this sort occurred in the mid-1970s. The countries with large oil reserves got together as members of OPEC (the Organization of Petroleum Exporting Countries). OPEC reduced production and oil approximately doubled in price from 1973 to 1975.

Almost the same thing happened a few years later. In the late 1970s, the OPEC countries again restricted the supply of oil to raise the price. From 1978 to 1981, the price of oil more than doubled. In 1986, squabbling broke out among members of OPEC. Member countries reneged on their agreements to restrict oil production. In the world market for crude oil, prices fell by a half. This fall in oil prices reduced costs to U.S. firms. In recent years, the world market for oil has not been as important a source of economic fluctuations. Part of the reason is that conservation efforts and changes in technology have reduced the economy’s dependence on oil.

a. Explain the short-run and long-run impacts of oil price increase on output and price level in the U.S. during 1973-1975 periods using the model of aggregate demand and aggregate supply. No need to draw the AD-AS diagram. Explain in words.

b. Explain the short-run and long-run impacts of oil price fall on output and price level in the U.S. in 1986, using the model of aggregate demand and aggregate supply. No need to draw the AD-AS diagram. Explain in words.

Using the Case Study below, answer the following questions

Case Study

Some of the largest economic fluctuations in the U.S. economy since 1970 have originated in the oil fields of the Middle East. Crude oil is a key input into the production of many goods and services, and much of the world’s oil comes from Saudi Arabia, Kuwait and other Middle Eastern countries. When some event (usually political in origin) reduces the supply of crude oil flowing from this region, the price of oil rises around the world. U.S. firms that produce gasoline, tires, and many other products experience rising costs, and they find it less profitable to supply their output of goods and services at any given price level. The first episode of this sort occurred in the mid-1970s. The countries with large oil reserves got together as members of OPEC (the Organization of Petroleum Exporting Countries). OPEC reduced production and oil approximately doubled in price from 1973 to 1975.

Almost the same thing happened a few years later. In the late 1970s, the OPEC countries again restricted the supply of oil to raise the price. From 1978 to 1981, the price of oil more than doubled. In 1986, squabbling broke out among members of OPEC. Member countries reneged on their agreements to restrict oil production. In the world market for crude oil, prices fell by a half. This fall in oil prices reduced costs to U.S. firms. In recent years, the world market for oil has not been as important a source of economic fluctuations. Part of the reason is that conservation efforts and changes in technology have reduced the economy’s dependence on oil.

a. Explain the short-run and long-run impacts of oil price increase on output and price level in the U.S. during 1973-1975 periods using the model of aggregate demand and aggregate supply. No need to draw the AD-AS diagram. Explain in words.

b. Explain the short-run and long-run impacts of oil price fall on output and price level in the U.S. in 1986, using the model of aggregate demand and aggregate supply. No need to draw the AD-AS diagram. Explain in words.

ALG Co. is launching a new, innovative product onto the market and is trying to decide on the
right launch price for the product. The product’s expected life is three years. Given the high level
of cost which have been incurred in developing the product, ALG Co. wants to ensure that it sets
its price at the right and has therefore consulted a market research company to help it do this. The
research, which relates to similar but not identical product launch by other companies, has reveal
that at a price of Ghc 60, annual demand would be expected to be 250,000 units. However, for
every Ghc 2 increase in selling price, demand would be expected to fall by 2,000 units and for
every Ghc 2 decrease in selling price, demand would be expected to increase by 2,000 units.
A forecast of the annual production cost which would be incurred by ALG Co in relation to the
new product are as follows:
Annual production (units) 200,000 250,000 300,000 350,000
Ghc Ghc Ghc Ghc
Direct material 2,400,000 3,000,000 3,600,000 4,200,000
Direct labour 1,200,000 1,500,000 1,800,000 2,100,000
Overheads 1,400,000 1,550,000 1,700,000 1,850,000

Required:
a. Calculate the total variable cost per unit and total fixed overheads.

b. Calculate the optimum (profit maximizing) selling price for the new product and
calculate the resulting profit for the period.
Note: P = a – bx then MR = a – 2bx

The sales director is unconvinced that the sales price calculated in (b) above is the right one to
charge on the initial launch of the product. He believes that a price should be charged at the launch
so that those customers prepared to pay a higher price for the product can be skimmed off first.

Required:
Discuss the conditions which would make market skimming a more suitable pricing strategy for
ALG Co. and recommend whether ALG Co. should adopt this approach.

Just this part of the question is required with detailed explanation :

Required:
Discuss the conditions which would make market skimming a more suitable pricing strategy for
ALG Co. and recommend whether ALG Co. should adopt this approach.

1. The selling price, variable costs, annual fixed costs, annual depreciation charges, and marginal tax rate for the project are shown below.  If sales are equal to 14,000 units, what is the after-tax profit?
   Sales Price	$3.00
   Variable Costs	$1.40
   Fixed Costs	$15,000.00
   Depreciation	$6,000.00
   Tax Rate	35%

1. A mesquite farmer wants you to invest in his mesquite harvesting business.  He sells mesquite wood to several "Texas-style" steakhouses that serve authentic "Mesquite-smoked" steaks.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per cord of mesquite	$72.00
   Variable costs (per cord)	$40.00
   Fixed Costs (per year)	$400,000.00
   Depreciation (per year)	$30,000.00
   Salary	$50,000.00
   Tax Rate	25%

   Based on this information, How many cords of mesquite wood must be harvested and sold the first year before there is any profit available to you? (Remember to include the farmer's salary in your costs that must be covered.)

1. A watermelon farmer wants you to invest in his watermelon business.  He sells watermelons to several roadside “farmer’s markets” every week.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per watermelon	$6.00
   Variable costs (per melon)	$1.30
   Fixed Costs (per year)	$30,000.00
   Depreciation (per year)	$6,000.00
   Salary	$40,000.00
   Tax Rate	25%

   Based on this data, how many watermelons must be harvested and sold the first year before there is any profit available to you?

1. A mesquite farmer wants you to invest in his mesquite harvesting business.  He sells mesquite wood to several "Texas-style" steakhouses that serve authentic "Mesquite-smoked" steaks.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per cord of mesquite	$72.00
   Variable costs (per cord)	$40.00
   Fixed Costs (per year)	$400,000.00
   Depreciation (per year)	$30,000.00
   Salary	$50,000.00
   Tax Rate	25%

   Based on these data, how much profit will you receive if he sells 18,000 cords?

1. A watermelon farmer wants you to invest in his watermelon business.  He sells watermelons to several roadside “farmer’s markets” every week.  He promises to give you all profits for 5 years after covering operating costs and his salary and taxes each year.   Your analysis of his operation revealed the following cost and price data.

   Selling price per watermelon	$6.00
   Variable costs (per melon)	$1.30
   Fixed Costs (per year)	$30,000.00
   Depreciation (per year)	$6,000.00
   Salary	$40,000.00
   Tax Rate	25%

   Based on these data, how much profit will you receive if he sells 20,000 melons?

1.    Which statement below is FALSE?

A         A monopoly faces a downward-sloping demand curve for the good that it sells.

B          A single-price monopoly cannot sell further units of the good without cutting the price.

C          Total revenue is maximized where marginal revenue is zero.

D         In the short run, a single-price monopoly maximizes profit where average cost equals average revenue.

E          In the long run, a single-price monopoly seeking to maximize profit would exit the industry if average total cost were to exceed price.

2.    Which statement below is FALSE?

A         In the case of a monopoly, marginal revenue is less than price at each level of output.

B          In the case of a monopoly, marginal revenue rises as output increases.

C          Ceteris paribus, a single-price monopoly charges a higher price than if it were organized as a competitive industry.

D         Ceteris paribus, a single-price monopoly sells a lower output than if it were organized as a competitive industry.

3.         Which statement below is FALSE?

A         Ceteris paribus, a single-price monopoly sells a lower output than if it were organized as a competitive industry.

B          If the scope for price discrimination were sufficiently great, a monopoly might have a higher output than would occur if it were organized as a competitive industry.

C          If economies of scale were sufficiently great, a monopoly might have a higher output than if it were a competitive industry.

4.    Which statement is FALSE?

A         A monopoly faces a falling demand curve for the good that it sells.

B          A monopoly can never make a loss.

C          A single-price monopoly can sell another unit only by cutting the price.

D         A monopoly faces a marginal revenue curve that is below the demand curve that it faces.

E          A single-price monopoly charges a price that exceeds the marginal revenue obtained through the sale of the last unit.

5.         Which of the following is NOT a necessary condition for price discrimination?

A         A seller who faces a downward-sloping demand curve for the good that she sells.

B          A seller who can charge each customer a different price.

C          A seller who can identify people with different price elasticities of demand.

D         A seller who can separate these people into different groups.

E          A seller who can prevent resale of the good by members of one group to members of another.

6.    Which is NOT an example of price discrimination?

A         A seller charging two different prices for a good with the difference in price entirely explained by the difference in the cost of supply.

B          A seller charging the same price for a good in two different markets where costs of supply differ between the two markets.

C          A doctor charging different prices to different patients.

D         Simultaneous publication of cloth and paperback editions of a book.

E       Showing a movie on broadcast TV several years after its first run in movie theaters.

7.    Which statement below is TRUE?

A      Successful price discrimination necessarily increases output.

B       Successful price discrimination necessarily increases consumer welfare.

C       Successful price discrimination necessarily increases profit for the seller.

D      Successful price discrimination necessarily raises prices for everyone.

E       Successful price discrimination necessarily lowers prices for everyone.

8.         Tying and bundling both involve selling two or more goods. Which business practice always pairs complements?

A         tying

B          bundling

Tax Depreciation Lab Assignment: Prepare an excel Spreadsheet to calculate MACRS depreciation on the following assets. Use the MACRS tables to look up the proper % to use for depreciation each year.

Business Assets:

Date

Item                             Purchased        Amount           Bus. Use         Life

Truck                           2/05/17            $28,000             100%            5 yr.

Mower 2                      3/08/17               12,000             100%            7 yr

Seeder                         3/01/16                 3,400             100%            7 yr

Equipment                   6/25/16                 1,595             100%            7 yr

            Laptop                         5/18/16                 2,200             100%            5 yr.

            Printer                         6/01/15                  900              100%            5 yr.

            Copier                         3/02/15                2,100            100%            5 yr.

            Mower 1                      3/01/14                6,000              100%            7 yr

§179 expense is elected on Mower 2 (§179 was not taken on assets purchased in prior years).

Table 2: All figures in Billions of Dollars

a.                Complete the table by determining the aggregate expenditure and the unplanned inventory change at all income levels

b.               Determine the marginal propensity to consume (MPC) and marginal propensity to save.

c.                What is the equilibrium level of income?   

d.               Calculate the value of the multiplier   

e.      What is the level of disposable income at all output levels and what effect would an increase in the tax level have on the equilibrium level of output?

Please use minitab

The air flow through a value on an automotive air pollution control device is believed to be controlled by three discrete factors; Arm Length, Spring Load, and Bobbin Depth. Use the data given below to determine if any of the factors have a statistically significant impact on average air flow.

plot this data into a bar graph: PYTHON

data=pandas.read_csv(r'data/tv_shows.txt', low_memory=False)

print((data))

print((data.columns))

 TV Shows : Rating
0           ---------------------
1   A Discovery of Witches : 100%
2                    Barry : 100%
3              Unforgotten : 100%
4                      Veep : 98%
5               Killing Eve : 97%
6                  Billions : 96%
7            Les Misérables : 96%
8                 Supergirl : 89%
9          Call the Midwife : 80%
10          Game of Thrones : 77%
11           Now Apocalypse : 77%
12             The Red Line : 69%
13         Lucifer : No Score Yet
14                Chernobyl : 95%
15               Dead to Me : 85%
16           Better Things : 100%
17      Brooklyn Nine-Nine : 100%
18           Tuca & Bertie : 100%
19      State of the Union : 100%
20        The Twilight Zone : 75%
21                  Happy! : 100%
Index(['TV Shows : Rating'], dtype='object')

In [9]:

display(data)