A Company produces and sells two types of smart phones. The price of Type-1 and Type –II smart phone assigned by Hamza is Rs. 120,000 per unit and 135,000 respectively. Variable cost for producing type-I phone is Rs. 150,000 and type –II is Rs. 300,000. Suppose there is Rs. 500,000 fixed cost.1. Formulate revenue and cost function for type-I and type-II smart phone jointly.2. Formulate total profit function3. What will be the total profit if Hamza produces and sells 500 sets of type-I and 750 sets of type – II.

a. Suppose the demand function P = 10 - Q, and the supply function is: P = Q, where P is price and Q is quantity. Calculate the equilibrium price and quantity.
b. Suppose government imposes per unit tax of $2 on consumers. The new demand function becomes: P = 8 – Q, while the supply function remains: P = Q. Calculate the new equilibrium price and quantity.
c. Based on (b), calculate the consumer surplus, producer surplus, tax revenue, total surplus and deadweight loss under the tax rate in (b). Also explain your answers in (c) diagrammatically.

7.Temple company has a 19% holding in Tipple corporation. Temple also exchanges management with Tipple on a regular basis. Temple holds 2 of Tipple’s 6 board seats. The remaining seats are held by independent directors. Temple is Tipple’s largest customer, buying 24% of Tipple’s ouput, and accounting for 22% of Tipple’s revenue. The remainder of Tipple’s shareholders own less than 5% of Tipple’s capital, except for one who owns 30%.

Is Tipple an investment of Temple’s or does Temple have significant influence or control? Should Temple consolidate Tipple, equity account it or simply account for it as an investment?

Managers conclude that the combination of two firms will expand revenues through cross selling of products, efficient exploitation of brands, and geographic and product line extension.

They forecast new revenues of $100 million in the first year and $200 million in year two, growing at 2.5% per year there after. The cost of goods underline these new revenues is 45% of the revenues.

To achieve these synergies will require an investment of $400 million initially, and 5% of the added revenue each year, to find working capital growth.

Find the net present value of the synergy is using a discount rate of 15% and a marginal tax rate of 40%

Explain the Krugman model of trading cities based on Dixit-Stiglitz monopolistic competition. In particular, discuss the following using words and graphs (you do not need to use mathematical notation):

a) How are the number of firms and product varieties determined in the model. Graph the firm demand, marginal revenue, average cost, and marginal cost of a representative firm

b) What is the effect of opening trade between two cities? How does this make consumers better off?

c) If there are two sectors producing final consumption goods, what can you predict about the pattern of production and trade?

Jet Company's summarized financial statement information for the beginning of the year is as follows:

Marketable Securities $50,000

All Other Assets $150,000

Total Liabilities $80,000

Total Stockholders' Equity $120,000

During the year, Jet had Revenue of $74,000, Expenses of $50,000 and paid cash dividends of $9,000. Marketable Securities increased in value by 7% , liabilities remained unchanged for the year and Jet had 15,000 shares outstanding all year. Calculate the information that Jet would report on its financial statements at the end of the year.   

net income

total assets

total libilites

total equity

eps

Following is the adjusted trial balance, with accounts in alphabetical order, for TRN Magazine as at January 31, 2017: Debit Credit Accounts receivable $ 21,300 Accumulated depreciation, equipment $ 12,300 Cash 8,800 Depreciation expense, equipment 1,650 Equipment 19,300 Interest income 480 Rent expense 17,800 Salaries expense 61,300 Subscription revenues 71,300 Trish Norris, capital 46,470 Trish Norris, withdrawals 19,700 Unearned subscription revenue 19,300 Totals $ 149,850 $ 149,850 Required: Prepare the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question 18

Covid-19 is arguably a black swan event that has put pressure on the demand curve for hospital services but may not increase revenue or profits for hospitals

Question 18 options:

Question 19

In the U.S. Medicaid and Medicare are entitlement programs that are paid for via fiscal policy

Question 19 options:

Question 20

The fundamental elements of supply and demand curves, price floors and ceilings, elasticity and inelasticity of demand, shortages and surpluses can all be expressed in discussions regarding healthcare costs, free trade and protectionism

Question 20 options:

Discussion: Types of Tax

After considering the "Types of Tax" PPT, please propose a general set of Income, Consumption, Wealth or other taxes at Federal, state or local level with rates for each which you consider would be best for the United States at this time. Please justify your choices by citing evidence from reliable outside sources. It is understood that this is only the revenue side of government (in Intro to Econ courses, taxes is included in Micro and spending in Macro -- go figure), but obviously if taxation changes, this has an impact on the spending side, at least in terms of whether there is a surplus or deficit.