Q: Enables us to compare GDP in countries wit different sized populations A. Nominal GDP B. Real GDP C.…
A: GDP is the gross domestic product. This is defined as the value of all goods and services produced…
Q: The following table shows Margaret's and Dennis's willingness to pay for Quantity of Cookies 2…
A: We have given our willingness to pay for the quantity demanded from 1 to 5. We know that the demand…
Q: Suppose Friedman Inc., a monopolistic competitor, sells sofas. They are able to sell 570 sofas at a…
A: Total revenue is the product of Quantity and price. Total cost is the product of average cost and…
Q: There are two oil producers, Saudi Arabia and Iran (these are countries which we are treating as…
A: Since you have posted a question with multiple sub parts, we will solve first three subparts for you…
Q: A monopoly's economic profits are represented by [marginal cost minus price] times number of units…
A: Answer to the question is as follows:
Q: When the supply of money increases, what happens to the interest rate? A. the interest rate…
A: The total amount of money that is in circulation in the economy at any particular time is referred…
Q: EXPLAIN WHY THE PRICE ELASTICITY OF SUPPLY IS LARGER: FOR FIRMS THAT CAN STORE INVENTORIES Full…
A: Elasticity is the concept used by economists to measure the responsiveness of supply to changes in…
Q: Which of the following is true in the dynamic AS-AD model? The dynamic aggregate demand curve is…
A: Introduction The dynamic AD–AS model focuses attention on how output and inflation respond over time…
Q: 2. Individual demand and consumer surplus Consider the market for antique cars. The market price of…
A: Consumer surplus is the area below demand curve and above price. The consumer surplus can be…
Q: Iran/Saudi 6 8 3 180, 360 150, 400 5 250, 300 175, 280 a. What is Saudi Arabia's best…
A: Dominant Strategy: The dominant strategy is the best response of all other strategies doesn't matter…
Q: 3 Five mutually exclusive, direct benefit alternatives are compared using the B/C method. The…
A: According to the benefit-cost ratio analysis, a project or alternative is economically justified if…
Q: 9. In Taxland, personal income up to $20,000 is not taxed; income greater than $20,000 but less than…
A: The marginal tax rate is the amount of additional tax paid for every additional dollar earned as…
Q: When the power law is applied to unit costs, unit costs exhibit a(n) a. exponential growth. b.…
A: A power law determines a functional relationship among the two quantities, where a relative change…
Q: 6. The monetary base is composed of: Reserves a. b. C. Coins and notes issued by the Fed Currency…
A: 17. When the interest rate is adjusted for inflation, it is the real interest rate. Hence, we can…
Q: Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the…
A: A Production Possibility Frontier (PPF) is a graph that shows all the possible combinations of two…
Q: Calculate the following, assuming that tax rate = 30%, nominal interest rate = 10%, expected…
A: Real interest rate refers to the rate of interest prevailing in the economh after adjusting for…
Q: Dan is considering borrowing $500,000 to purchase a new condo. Based on that information, answer the…
A: A loan that is amortized requires the borrower to make regular payments that are applied to the…
Q: 4. Millie manufactures potteries which requires renting a workshop at AED 30,000 per month and…
A: Fixed Cost refer to those costs which are independent of the level of output whereas variable costs…
Q: How can household borrow in the United States be Reduced? Write in 4 paragraph
A: Borrowing: In the Budget document, borrowing is categorized as a loan taken by the government and is…
Q: Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the…
A: When talking about general framework of demand and supply model, it can be said that this model…
Q: Which of the following is true about the Phillips curve? Group of answer choices The empirical…
A: PC(Phillips Curve) shows/depicts that there exists a negative/indirect association between the…
Q: a bank determines that it is prudent to hold $2 for every $100 in deposits. The bank holds desired…
A: Introduction A desired reserve ratio is the fraction of deposits that regulators require a bank to…
Q: Calculate the Break-Even Point and Return of investment using following information. Total benefits…
A: Given cash flows Year Cash inflow Cash outflow 0 9000 75000 1 35000 9000 2 45000 9000 3…
Q: Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows…
A: The real GDP and Nominal Gross Domestic Product (GDP) would quantify the total value of all items…
Q: Now suppose that an environmental regulation raises Firm 2’s costs to 18. Firm 1’s costs remain the…
A: Cornot Duopoly model: This is an oligopoly model where 2 firms compete in the market. Here both…
Q: A college is considering investing $6 million to add 10,000 seats to its football stadium. The…
A: When the revenues are more than costs the project will be beneficial. A project will be accepted…
Q: 3) C = 40Q +200 mc; = ५० mc, = mc₂=40 P₁ = 200 - Q. TR₁ = P₁Q₁ = 200 Q₁-Q₁² MR, = 200 - 29, MR. =…
A: 3). C = 40Q + 200 MCi = 40 MC1 = MC2 = 40 P1 = 200 - Q1 => TR1 = 200Q1 - (Q1)^2 MR1 = 200 -…
Q: Which of the following is NOT one of the forms of production that is excluded in GDP? A. Household…
A: Gross domestic product measures the market value of final goods and services produced within the…
Q: 5. In the short run, the general view of the relationship between housing supply and the price of…
A: When talking about housing market, it can be seen that the supply of housing is inelastic while the…
Q: This question examines the relationships between different measures of a firm's costs, including…
A: Variable cost is a corporate expense that changes in amount to how much a company produces or sells.…
Q: Sankar owns a pet furniture business but he wants to grow his business and increase sales and…
A: Business: An organization or entrepreneurial entity engaged in commercial, industrial, or…
Q: In the absence of technological progress, an increase in the saving rate will affect which of the…
A: Here, it is given that there is an absence of technological progress due to which the growth depends…
Q: 1. An oil company is being offered a special coating for the underground gasoline tank installation…
A: Given that, Tank cost with coating = P58,000 Tank cost without coating = P40,000 Installation cost =…
Q: Which of the following is incorrectly classified as an expenditure reducing policy? Select one: a.…
A: When talking about an expenditure reducing policy, it can be said that it is the policy to allow…
Q: how the concept of diminimishing matginal ulitily leads to folks allocating their income to a varied…
A: The overall utility received from the consumption of a good will increase initially at an increasing…
Q: 4. Effects of a tariff on international trade The following graph shows the domestic supply of and…
A: Tariff Tariffs are taxes levied on imported goods or services. Tariffs are a common feature of…
Q: 1. In 2013, Roma was a schoolteacher and earned $40,000. But she enjoys creating cartoons, so at the…
A: Explicit costs are normal business costs that show up in a company's overall record and directly…
Q: Discuss whether we can derive the Pareto set of a two-agent two-good pure exchange economy directly…
A: In a two-agent, two-good pure exchange economy, Pareto set is defined as the locus of optimal…
Q: Suppose there are two firms in a Cournot type setting (choosing quantity simultaneously). How would…
A: According to the oligopoly Cournot model, firms in an industry all produce a same good and aim to…
Q: The supply equation for a given product is y = 10x + 50, while the demand equation for the same…
A:
Q: Between 2012 and 2022, the nominal GDP of Wonderland grew, on average, by 7% per year while her GDP…
A: labor productivity growth = % change in real output - % change in total number of labor The real…
Q: Bubba's Burgers sells hamburgers in a perfectly competitive market at a price of $1.50 each. At the…
A: Under perfect competition, an individual seller is a price taker. As a result, the individual demand…
Q: Adam leases a truck with an upfront payment 3100 and monthly payments of 116. Assuming there is no…
A: An implicit or written lease outlines the terms and circumstances under which a lessor agrees to…
Q: Analyze current economic situations with particular emphasis on tariffs, and how these affect the…
A: 1. Tariffs are taxes that are placed on imported goods. They are designed to make imported goods…
Q: For the cash flows shown, use an annual worth comparison and an interest rate of 12% per year. a)…
A: Annual Wort (AW) = PW(A/P, i, n) = FW (A /F, i, n) Where P is the initial cost and A is annual…
Q: In this question, you'll deal with two goods, and you'll have to solve for cross-price elasticity…
A: Here, for the cross price elasticity of demand, given information is: Old price of file cabinet:…
Q: Suppose that the reserve requirement for checking deposits is 16 percent and that banks do not hold…
A: Introduction The Federal Reserve promotes the safety and soundness of individual financial…
Q: 1. How is the price elasticity of demand for alcoholic drinks relevant to determining the effect of…
A: Price Elasticity of Demand is defined as the measure of responsiveness and sensitivity of a consumer…
Q: two machines. You work for Midstates Solar Power. A manager asked you to analyze the following…
A: Capital recovery (CR) refers to the return that an investor gets on the initial investment made.…
A project has a
Step by step
Solved in 3 steps
- Your friend Sarah is planning to open a hardware store. She estimates that it would cost $50,000 each month to rent the location and buy the inventory. In addition, she would have to quit her $3,000/month job at an insurance firm. Her revenue for the store would be $60,000 each month. What is her expected accounting profit per month if she opens the hardware store? A $10,000 B $60,000 C $5,000 D $50,000 E $55,000 F $45,000Sam invested a total of $100,000 into a project, and his total profits to date sum up to $120,000. What is the return on investment? 0.25 0.15 0.30 0.20You are the CEO of a company. You have an opportunity to undertake the following project: pay $1,000 today and receive $1,300 a year from now. If the interest rate is 30%, the net gain of the project (cost minus benefit) is: A) $440. B) $200. C) $166. D) $0.
- A manufacturing company leases a building for $110,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $14 in labor and $10 in materials. The product can be sold for $39. How many units must be sold each year for the company to earn a profit of $65,000 per year? Choose the closest answer below. A. 10,400 B. 13,000 C. 20,800 D. 7,800 E. 18,200A project has an expected return on investment of 7% and the firm’s hurdle rate is 5%. Explain why the firm may choose not to undertake this project.REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the Payback Period of Project A (expressed in years, months and days). Calculate the Accounting Rate of Return on average investment of Project A (expressed to two decimal places). 5.2 5.3 Calculate the Benefit Cost Ratio of both projects (expressed to two decimal places). 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? 5.5 Calculate the Internal Rate of Return of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. Initial cost Expected useful life Expected scrap value Depreciation per year Expected net profit: End of year 1 2 3 4 5 Project A R900 000 5 years R100 000 R160 000 R 100 000 140 000 150 000 120 000…
- Question 1 Consider a 200,000 SF office building complex, with NOI of $25/SF/year with rents and oper- ating expenses paid in arrears (at the end of the year) annually, and no capital expenditures. The rent will increase by 3% per year. The discount rate is 10%/year. a. What is the value of this office building, assuming that the building is sold at the end of year 10 and the cap rate at that time is expected to be 10%? What is the cap rate at time 0? b. What is the value of this office building, assuming that the building will be held and rented indefinitely (perpetually)? What is the implied cap rate at time 0? c. What is the value if the rents are paid in advance (at the beginning of the year) and the building is rented perpetually?A clothing manufacturing firm is deciding whether to invest in a new technology that needs an initial investment of $45,000. This will increase cash flows in the first year by $25,000 and $30,000 in the second year. The firm’s current fixed costs are $9,000 and marginal cost is $15. The firm currently charges $18 per unit. What’s the firm’s contribution margin?The board of your company discusses a possible future price increase of 20% for one of the products. The argument against the increase is a decrease in sales due to the increased price. With how many units (pieces), sales can fall, without changing the total gross margin, with the following data for your company.Current sales price per piece SEK 600Variable costs per piece SEK 450Current sales volume 10,000 pieces
- What process does the net present value method use to help management determine whether a project is acceptable to a company? Options : A. It discounts net cash flows to their present value and then compares that value to the capital outlay required by the project.B. It determines the interest rate that will cause the present value of the capital expenditure to equal the present value of the expected net cash flows.C. It divides the present value of net cash flows by the initial investment to determine the profitability index of the project.D. It identifies the time period required to recover the cost of the capital investment from the net annual cash flow produced by the project.Considering the following project balances for the proposed investment projects. What is the value of x, y, z?3-3 Hidden Cost of Capital Does your company charge your division for the capital that it uses? If not, does this lead to bad decisions? What can be done to fix the problem? Compute the profit consequences of the change.