Microeconomics

Marginal Productivity and the Law of Diminishing Marginal Returns

You have recently been hired to manage a movie theater. You observe that there are many customers waiting around the concession area to buy snacks. You also observe that there is only one clerk working the counter. This employee has to do everything from get the popcorn going, stocking condiments and supplies, changing the soda canister when the syrup runs out for fountain drinks, helping customers, fill orders, collect cash, and of course, smile at the customers who have waited lengthy periods of time.

You obtain a report that shows the average sales per weekend night are $500 with one clerk. You decide to hire another clerk for the shift and sales increase to $1,000. You add one more clerk, and sales increase to $1,700. Again, you add another clerk, and sales increase to $1,900. Finally you add one more clerk, and sales increase to $2,000.

1.         Calculate the marginal product associated with each clerk. Draw a table to do this.

2.         At what point did the law of diminishing marginal return become evident?

3.         Why did the marginal product increase as more clerks were added initially?

4.         Why did the marginal product start to diminish?

NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:

Required:
Journalize the transactions in a general journal.


Analyze:
What was the amount of trade discounts received on the June 15 purchase from Park Research?

Issued Check 101 to purchase merchandise, $3,800.

Note: Enter debits before credits.

Purchased merchandise for $1,350 from BioCenter Inc., Invoice 606; terms 2/10, n/30.

Note: Enter debits before credits.

Purchased merchandise for $5,150, plus a freight charge of $100, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.

Note: Enter debits before credits.

Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.

Note: Enter debits before credits.

Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $350 that was returned; the goods were purchased on Invoice 1011, dated June 5.

Note: Enter debits before credits.

Purchased merchandise for $1,610 from BioCenter Inc., Invoice 612; terms 2/10, n/30.

Note: Enter debits before credits.

Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.

Note: Enter debits before credits.

Purchased merchandise with a list price of $8,500 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.

Note: Enter debits before credits.

Issued Check 104 to purchase merchandise, $2,300.

Note: Enter debits before credits.

Returned merchandise purchased on June 20 as defective, receiving a cash refund of $210.

Note: Enter debits before credits.

We Do Bankruptcies is a law firm that specializes in providing advice to firms in financial distress. It prospers in recessions when other firms are struggling. Consequently, its beta is negative, −0.2.

a. If the interest rate on Treasury bills is 5% and the expected return on the market portfolio is 20%, what is the expected return on the shares of the law firm according to the CAPM? (Enter your answer as a whole percent.)

b. Suppose you invested 90% of your wealth in the market portfolio and the remainder of your wealth in the shares in the law firm. What would be the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

in addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of 12 %and a volatility of 25 % Currently, the risk-free rate of interest is 4 %Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 20%, volatility of 80 %, and a correlation of 0.2 with the Tanglewood Fund. Assume you follow your broker's advice and put50 % of your money in the venture fund:

a. What is the Sharpe ratio of the Tanglewood Fund?

b. What is the Sharpe ratio of your new portfolio?

Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to $12.4 trillion, government spending (G) equal to $3.4 trillion, transfer payments (TR) equal to $1.6 trillion, and taxes (T) equal to $4.7 trillion. Suppose the government increases its spending on national defense such that government spending increases by $0.2 trillion. What must happen to total savings (S)? That is, what is the dollar amount by which total savings changes? Assume the values for GDP, consumption, taxes, and transfer payments do not change.  Provide your answer in trillions of dollars rounded to one decimal place.

Suppose that a random sample of size 64 is to be selected from a population with mean 40 and standard deviation 5. (a) What are the mean and standard deviation of the x sampling distribution? μx = 1 40 Correct: Your answer is correct. σx = 2 .625 Correct: Your answer is correct. (b) What is the approximate probability that x will be within 0.2 of the population mean μ? (Round your answer to four decimal places.) P = 3 .2510 Correct: Your answer is correct. (c) What is the approximate probability that x will differ from μ by more than 0.6? (Round your answer to four decimal places.) P =

a) i. Determine the expected return and risk of a portfolio made up of 70 per cent of security X and 30 per cent of security Y if the correlation coefficient for the returns on X and Y is +0.2 Security Expected Return Standard Deviation of Return

X 12 per cent 15 per cent

Y 18 per cent 22 per cent

ii. Explain briefly why the risk of the portfolio specified above is below the weighted average of the risk of securities of X and Y.

b) Explain how increasing the number of securities in a portfolio is likely to reduce the risk of the portfolio but it is unlikely to eliminate all of the risk.

a) i. Determine the expected return and risk of a portfolio made up of 70 per cent of security X and 30 per cent of security Y if the correlation coefficient for the returns on X and Y is +0.2 Security Expected Return Standard Deviation of Return

X 12 per cent 15 per cent

Y 18 per cent 22 per cent

ii. Explain briefly why the risk of the portfolio specified above is below the weighted average of the risk of securities of X and Y.

b) Explain how increasing the number of securities in a portfolio is likely to reduce the risk of the portfolio but it is unlikely to eliminate all of the risk.

Find the design cooling and heating loads of UC 1017. Consider UC 1017 is a detached room. You are free to assume any values reasonably for the calculation. Consult different charts, tables and climate data as necessary. Assuming 50% fresh air and 50% of recirculated air passing through the evaporator coil and the by-pass factor of 0.2, find the dew point temperature of the coil and the capacity of the coil.

I need you to provide the Table and the calculation for everything.

the room size = Hight 6.6 m , width 18m, length 14.5m

I'll attach an example for a student work from last year that I'd like you to follow.