(23 Points) Steve Sells Specialist Sports Equipment. The Following Table Shows The Willingness
(23 points) Steve sells specialist sports equipment. The following table shows the willingness to pay of 5 potential customers for a particular piece of equipment. Buyer Identifier Willingness to pay ($) Member of the Sports Club A 6 No B 5 Yes C 4 Yes D 3 No E 2 Yes The cost to Steve of selling this equipment is $2 per unit. In the social optimum buyers ___________________ would be served and the price would be $_____ Suppose Steve cannot identify buyers but knows the distribution of their willingness to pay. Complete the following Table (3 points) and use that information to answer the following questions (5 points): Price 6 5 4 3 2 Number of Sales 1 Total Revenue 6 Marginal Revenue 6 The profit maximising price is $_______ Total profits are $_______ The customers served are _______________ Total consumer surplus is $_______ Total surplus is $_______ Now suppose Steve knows the distribution of willingness to pay of the members and non-members of the Sports Club. Complete the following tables (5 points) and use that information to answer the following questions (8 points): Members Price 5 4 2 Number of sales Total revenue Marginal Revenue Non-Members Price 6 3 Number of sales 1 2 Total revenue 6 6 Marginal Revenue 6 0 The profit maximising price to Members is $_______ The profit maximising price to non-members is $________ Total profits are $_____ Total consumer surplus is $________ Do Members gain from this price discrimination? Do non-members gain from this price discrimination? please write down the process how to calculate ?thanks
Given A Linear Time-series Trend Ŷ = 5.2 3.1t, What Is The Forecast
Given a linear time-series trend Ŷ = 5.2 3.1t, what is the forecast for 2010 if the time series started in 2003?
Identify Four Grounds Used By The Courts For Introducing Implied Terms Into A Contract.
Identify four grounds used by the courts for introducing implied terms into a contract. Give an example of each. please give an short example for each one 1. Business efficacy 2. Trade customs 3. Prior dealings 4. Statutory requirements
Explain The Following Phenomena Using Properties Of Kahneman And Tversky’s Prospect Theory As We’ve
Explain the following phenomena using properties of Kahneman and Tversky’s prospect theory as we’ve discussed it in class. Carefully state what is being evaluated, what is the reference point, what property of prospect theory explains the phenomenon, and why that property explains it. (a) Gamblers tend to bet more recklessly with money they have just won (and more generally, people tend to more easily spend money acquired easily or unexpectedly). This is commonly referred to as the “house money effect.” (b) When some stores started introducing charges for credit-card transactions, credit-card companies lobbied hard to have stores call the credit-card price the regular price and the difference a “cash rebate,” rather than call the cash price the regular price and the difference a “credit-card surcharge.” (c) In many contracts for services (such as cell-phone contracts), different features of the service are separated out in great detail, yet the price of the service is subsumed in a single relatively large payment. (d) The fact we talked about in class on horserace betting (that betting on longshots increases toward the end of the day, especially in the last race). (e) Can you explain the phenomena described under (d) with a second different property of prospect theory?
Q1:Suppose That We Measure Meat Output In Terms Of Calorie Content And Consider Animal
Q1:Suppose that we measure meat output in terms of calorie content and consider animal feed and water as two key inputs going into meat production. Diagrammatically compare the cost of producing pork with that of beef of equivalent calorie content on a typical American farm using information from the assigned article and explain your answer. Q2: Using the information in the article and your own research, briefly comment on whether economies of scale may exist in the production of any two of the following three kinds of meat: pork, beef and chicken. Please ensure to include appropriate evidence (specific facts/numbers/patterns) to support your claim. Is it plausible that existence or otherwise of economies of scale can be country specific? Provide a brief justification for your answer. NOTE: You must find and use at least one relevant information source that is not from a textbook and the assigned article to support your answer.
4. You Are The CEO Of Valu-Added Industries, Inc. (VAI). Your Firm Has 10,000
4. You are the CEO of Valu-Added Industries, Inc. (VAI). Your firm has 10,000 shares of common stock outstanding, and the current price of the stock is $100 per share. There is no debt; thus, the “market value” balance sheet of VAI looks like: VAI Market Value Balance Sheet Assets $1,000,000 Equity $1,000,000 You then discover an opportunity to invest in a new project that produces positive cash flows with a present value of $210,000. Your total initial costs for investing and developing this project are only $110,000. You will raise the necessary capital for this investment by issuing new equity. All potential purchasers of your common stock will be fully aware of the project’s value and cost, and are willing to pay “fair value” for the new shares of VAI common. What is the Net Present Value of this project? How many shares of common stock must be issued (at what price) to raise the required capital? What is the effect of this new project on the value of the stock of the existing shareholders, if any?
You Are Considering Purchasing Stock In Canyon Echo. You Feel The Company Will Increase
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.1 percent indefinitely. The company just paid a dividend of $3.86 and you feel that the required return on the stock is 12.5 percent. What is the price per share of the company’s stock?
Bogey Inc. Expects That Dividends Will Grow Constantly At 0.06. It Is Expected To
Bogey Inc. expects that dividends will grow constantly at 0.06. It is expected to pay a diviend of $4.6 next year, and the market capitalization rate is 0.14. What is the intrinsic value of the company in four years (t4)? Assume the constant growth DDM. * Round your answer to TWO decimal places.
. Mr. David Prefers Food And Clothes. And His Utility Function Is Given As
. Mr. David prefers food and clothes. And his utility function is given as U(F, C)= log F log2C. Cost of the unit amount of food and clothes are $1 and $2 respectively. Mr. David has $24 to spend on food and clothing. (𝑀𝑈𝐹 = 1 𝐹 , 𝑀𝑈𝐶 = 1 2𝐶 ) a. Write down the budget constraint. Given the equation for David’s budget line. What is the slope of the budget line? b. Graph the budget line. Please label X-axis as food. c. Find the optimal consumption of food and clothes, then calculate the optimal utility. d. Suppose the price of food increase to the $4. Then find the new equilibrium bundle. And calculate the optimal utility.
Suppose David Is A Tea And Coffee Drinker. He Has Total Income Of 200
Suppose David is a tea and coffee drinker. He has total income of 200 dollars. His utility is given as U(T, C) = 2T 3𝐶2 . The price of tea is 2 dollars while price of coffee is 4 dollars. Marginal utility of tea is 2 and marginal utility of coffee is 6C. a. Write down the budget curve and optimality condition. Draw the budget curve. Mark X-axis as T. b. Calculate the optimal level of quantity and optimal utility. c. Now the price of tea increases to 4 dollars each. Write down the budget curve. Calculate the optimal level of quantity and utility.
The Standard Deviation Of Market Return Is 40% And Expected Market Return Is 14%
The Standard Deviation of Market Return is 40% and expected market return is 14% The risk Free Rate is 7% The Covariance of returns for the market and return on share s of company over the period has been 20% Calculate Cost of equity for ABC ltd.
Assume That Ailin And Bob Have The Following Value Function Over Exam Scores: V(x)
Assume that Ailin and Bob have the following value function over exam scores: v(x) = x/2 for gains and v(x) = 2x for losses. Both of them use the expected exam score as their reference point. (1) Ailin expects to score 75 out of 100 on her upcoming midterm exam. She does better than expected. What is her gain, in terms of value, if her final score is 93? (2) Bob also expects to score 75 out of 100 on his upcoming midterm exam. He does worse than expected. What is his loss, in terms of value, if his final score is 67? (3) How should Bob have set his expectations if he wanted to maximize value?
The Supply And Demand Function For The Apple Is Given As: Q=1/3 P, And
The supply and demand function for the apple is given as: Q=1/3 P, and Q=100 – 1/3 P. If the government put a tax of 20 dollars on consumer side of the market. Find the CS, PS, DWL, and Tax Revenue for this market.
Case Prep – Airbnb Identify The Main Generic Strategy Of Airbnb Identify The Relevant
Case Prep – Airbnb Identify the main generic strategy of Airbnb Identify the relevant industry wherein Airbnb competes Complete a Porter’s five the industry wherein Airbnb competes What is the main ‘thing’ that has led to either the success or failure of Airbnb?
The Auto Of Your Dreams Cost $30,000 Today. You Have Found A Way To
The auto of your dreams cost $30,000 today. You have found a way to earn 10% interest on an auto purchase account. If you expect the cost of your dream to increase based on a 5% annual interest rate, how much would you need to deposit to have enough money to buy this vehicle in 5 years.
Suppose The Fed Has Observed The Economy Is Experiencing Demand-Pull Inflation And A Positive
Suppose the Fed has observed the economy is experiencing Demand-Pull inflation and a positive output gap. Discuss the monetary policy process and tools that can be used to address an inflationary output gap. Depict graphically the impact of these policy actions in the AD-AS model. What happens to the equilibrium price level and output level?
Discuss The Link Between High Rates Of Unemployment, The Social Challenges That Face A
Discuss the link between high rates of unemployment, the social challenges that face a neighborhood, and the deterioration of social networks. Select a neighborhood in Chicago that you may have read or heard about that faces many social challenges. Provide a demographic profile of the area, and discuss how some of the indicators that you have uncovered contribute to some of the challenges faced by the community.
For Each Market Failure Identified Below, Use Graphs And Economic Models To Explain The
For each market failure identified below, use graphs and economic models to explain the following: -The reason for the market failure -The possible or potential effects of the failure (whether positive or negative) -The role of government regulations/policy to correct each failure, and what effects those regulations might have on the company’s costs, revenues, and profits Also explain how each one is effected by government intervention and globalization. •Drug Efficacy: Most actors will be less well informed than the manufacturer about the efficacy of the drug. This is a problem in virtually all context. Dispenser and consumer must depend on the manufacturer for information about the effects of the drug. •Drug Quality: There may be substantial questions about the quality and safety of the drug. This is a critical issue in countries with weak regulatory authorities where unsafe drugs are often marketed. •Appropriateness Of The Drug: Patients tend to know less than the dispenser about the appropriateness to their of specific drug.
In Early Childhood Increasing Family Involvement Is An Issue With All Families Of Children
in early childhood Increasing family involvement is an issue with all families of children with disabilities. How does cultural and linguistic diversity create more of a challenge to increase family involvement? What are some things schools can do to facilitate increased involvement among families with diverse cultural and linguistic backgrounds?
Draw Graphs And Explain How Each Of The Following Case Changes The Equilibrium Interest
Draw graphs and explain how each of the following case changes the equilibrium interest rate in the money market. Purchase of government bonds by the central bank in the open market Increase in the price level Increase in the real level of income Development of electronic banking
Q1: What Are The First And Second-order Conditions For Profit Maximization For A Firm
Q1: What are the first and second-order conditions for profit maximization for a firm operating under perfect competition? Give an economic interpretation of both conditions.
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