1. Purchasing Power Parity theory

2. Suppose that an ounce of gold sells for $2000 in the United States and 1000 euros in France. A euro currently trades for $1.50 . it costs $100 to ship an ounce of gold between the two countries. Assume it is legal to buy and ship gold in both countries. Then

3. Suppose that Laborland has a population of 100 people. Five people are under 16 years of age and five people are retired. Ten people have given up looking for work. Sixty people are actively employed and 20 people are actively seeking work. If five of those give up looking for work, then

How does change in risk impacts return and firm's value.

If the daily marginal cost of security guards is $500, what is the socially optimal number of security guards for the community?

Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions:

*Before any purchase discount.

Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

Required:

1. Refer to case 1 shown above. Alpha Division can avoid $6 per unit in commissions on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

2. Refer to case 2 shown above. A study indicates that Alpha Division can avoid $5 per unit in shipping costs on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Would you expect any disagreement between the two divisional managers over what the exact transfer price should be?

d. Assume Alpha Division offers to sell 68,000 units to Beta Division for $39 per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole?

3. Refer to case 3 shown above. Assume that Beta Division is now receiving an 6% price discount from the outside supplier.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

d. Assume Beta Division offers to purchase 18,000 units from Alpha Division at $55.16 per unit. If Alpha Division accepts this price, would you expect its ROI to increase, decrease, or remain unchanged?

4. Refer to case 4 shown above. Assume that Beta Division wants Alpha Division to provide it with 56,000 units of a different product from the one Alpha Division is producing now. The new product would require $27 per unit in variable costs and would require that Alpha Division cut back production of its present product by 28,000 units annually. What is the lowest acceptable transfer price from Alpha Division’s perspective?

A 60.0 kg skier is moving at 6.15 m/s on a frictionless, horizontal snow-covered plateau when she encounters a rough patch 3.95 m long. The coefficient of kinetic friction between this patch and her skis is 0.330. After crossing the rough patch and returning to friction-free snow, she skis down an icy, frictionless hill 2.95 m high.

How fast is the skier moving when she gets to the bottom of the hill?

How much internal energy was generated in crossing the rough patch?

I am working on a case study for my business marketing class. The case talks about Best Buy (electronics store) bringing new smartphones for sale in Canadian market. We need to perform a 4P analysis. I know what they are, but don't know where to start. Could you please help me?

In this exercise you are choosing between the following investment strategies:

Invest $200 in stock A. Stock A costs $20 per share. Expected yield per share of stock A is $2, and the variance of yield per share is 9 ($-squared).

Invest $200 in stock B. Stock B costs $10 per share. Expected yield per share of stock B is $0.90, and the variance of yield per share is 1 ($-squared).

Invest $100 in stock A and $100 in stock B. The correlation between yield per share of stock A and yield per share of stock B is 0.12.

1)With strategy (iii), how many shares of stock A and stock B do you buy?

a) 10 shares of A and 20 shares of B

b) 5 shares of A and 10 shares of B

c)10 of each

d) 20 of each

2)What is the value of the covariance between the yield on a share of stock A and the yield on a share of stock B?

a) 0.16

b)0.12

c) 1.08

d) 0.36

3) When will portfolio (iii) lose money?

a) When the yield on portfolio (iii) is less than the expected yield on portfolio (iii)

b) When the yield on portfolio (iii) is negative

c) When the yield on stock A is negative and the yield on stock B is negative

d)When the yield on stock A is negative or the yield on stock B is negative

1. EXPORTS AND IMPORTS

a. Graph a nation that is exporting a good to a trading partner. Who benefits from the domestic nation exporting to a trading partner?

b. On the graph, Identify the amount of good exported, identify the change in domestic consumption and the change in domestic production caused by exporting that good.

c. In a separate graph, show a nation importing a good from a trading partner. Who benefits from the domestic nation importing from a trading partner?

d. On the graph, identify the total amount of the good imported, the changes in domestic consumption and production as caused by the imports

A firm with a production function given by ?=170?q=170N, where ?q is the quantity produced and ?N is the number of workers hired. The firm sells its product in a competitive market, and the market price of its good is ?=1p=1.

The firm, however, is the only employer in the town where it operates, and hence it does not take the cost of labour as given. The inverse labour supply function in this town is given by ?=50+0.02?2w=50+0.02N2.

(a) Write an equation for firm profits as a function of ?N and solve for the profit-maximizing choice of ?N.

(b) What will the wage be in the town where the employer operates?

(c) Is the wage equal to, greater than, or less than the marginal product of labour? Explain intuitively why this is the case in this setting.

For each situation below determine the direction of the induced current in the loop (if there is one).

(a) A square loop is moving at a constant velocity to the right through a uniform magnetic fieldthat is directed into the page and which extends out of the picture to the left and right. In which direction is the induced current in the loop?

[ ] clockwise [ ] counter-clockwise [ ] there is no induced current Justify your answer (with words, pictures, or both):

(b) A circular loop is at rest in a magnetic field directed into the page. The magnetic field is increasing in magnitude. In which direction is the induced current in the loop?

[ ] clockwise [ ] counter-clockwise [ ] there is no induced current Justify your answer (with words, pictures, or both):

(c) A piece of wire is wrapped into a loop and placed in a uniform magnetic field that is directed into the page. You then pull on the ends of the wire so the area of the loop is decreasing. In which direction is the induced current in the loop?

[ ] clockwise [ ] counter-clockwise [ ] there is no induced current Justify your answer (with words, pictures, or both):

(d) A bar magnet is held near the center of a wire loop. The magnet is then pulled away from the loop. The north pole is always closest to the loop. In which direction is the induced current in the loop? (The direction as seen by the north pole of the magnet.)

[ ] clockwise [ ] counter-clockwise [ ] there is no induced current Justify your answer (with words, pictures, or both):

A company TFA has a monopoly on toilet paper production. It offers its product in three different sizes: a small (S) package which contains 4 rolls, a medium (M) package which contains 8 rolls, and a large (L) package which contains 12 rolls.

There are two types of consumers in the market: type A consumers and type B consumers. The willingness-to-pay (WTP) for each type of toilet paper package for each type of consumer is detailed in the table below (in dollar amounts):

(c) Suppose that TFA now offers better prices for people buying larger packages of toilet paper. Specifically, while the price of the S package remains at $4, the M package will now be sold for $6.40 and the L package will now be sold for $9. How does this affect the consumption decisions of each type of consumer? How does it impact TFAs total revenues?

(d) TFA is considering discontinuing sales of the M packages, and selling only S or L packages (maintaining the same pricing strategy as in part c). If TFA's goal is to maximize their revenues, would this be a good strategy for them? Explain why or why not.

In a market economy resources tend to be allocated optimally. Discuss how the interaction of consumers and producers makes this happen.

How do I reflect on the Baldrige principle?