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You will be happy to sell the stock for $90 and would like to increase your income if this goal is reached. Suggest a strategy that increases your income at the cost of giving up the upside above $9
The aftertax cost of debt is 7 percent, the cost of preferred stock is 10 percent, and the cost of common equity (in the form of retained earnings) is 13 percent. Calculate United Business Forms' we
Explain why a firm's long-run costs are minimized when it employs a mix of resources such that the ratio of all of the resources' marginal products to their wage rates are equalized. Use a graph to
The table above shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. a. Calculate the marginal product of labor. b. At what point does diminishi
The Demand Function for a product can be as Q=400-2P. We would have a fixed cost for this product as 200 and our variable costs are 0.5 per unit. Please let me know the equation for the profit.
It costs Dan's company C(x) = x^2 - 3x + 64 dollars to produce x items. The selling price (p) when x hundred units are produced is p(x) = (44 - x)/4. Determine the level of production (# of items pr
Task: Suppose three firms face the same total market demand for their products. The demand is: Suppose further that all three firms are selling their product for $60 and each has about one-third of th
In economics, when you plot cost and revenue on the Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue. This is a crucial notion to understand.
Supose this firm is operating in a perfectly competitive market as price taker. If the market price is $90, in the short run, this firm should:
Assuming this firm is a short-run profit-maximizer or loss-minimizer. which statement best describes its present situation?
Problem 1: Two projects have the following NPVs and standard deviations: Which of the two projects is more risky?
Given these figures, is the firm currently allocating its production resources optimally? If not, what should it do? (Consider output per person as a proxy for marginal product). Suppose the firm wa
Question: What will be the K/L ratio when the price of labor is 2, and the price of capital is 1, and why? Question: What explains the direction of the changed K/L ratio in (d) from that in (c)?
Is the firm operating efficiently i.e. is it producing the current output at minimum cost? If not what changes should it make?
Problem: When a firm earns a normal profit, its revenue is just enough to cover both its ____________ cost and its ___________ cost.
Problem: Distinguish between the following types of costs: 1) Historical Cost and Replacement Cost
Question 1: What are the characteristics of a Perfectly Competitive Market? Question 2: What are the Characteristics of a Monopoly?
If a perfectly competitive firm has the following cost function: MC = $150 + 0.005Q, calculate a profit maximizing level of output at the market price of $175.
Q1) What are the projects' NPVs, assuming the WACC is 5 percent? 10 percent? 15 percent? Q2) What are the project' IRRs each of these WACCs?
When diseconomies of scale outweigh economies of scale the a. long run average cost curve risesb. marginal cost curve declines c. average total cost curve declines d. average variable cost curve
Suppose a firm is currently maximizing its profits (i.e. following the MR - MC rule). Assuimg that it wants to continue maximizing its profits, if its fixed costs increase, it should:
The internal rate of return on a project can be found A. by discounting all cash flows at the cost of capital B. by averaging all cash inflows, and calculating the interest rate which will make them e
Thomas Schelling, an expert on nuclear strategy and arms control, observed in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), "The power to constrain an adversary
If two firms are identical in all respects expect that one has more capital than another, the total product curve for the firm with more capital
What pricing strategy you suggest to the manager to maximize his profit assure that the marginal cost of renting any equipment in 5$.