7. An individual's utility function is given by U =1000x, + 450x, + 5x,x, – 2x – x where * is the amount of leisure measured in hours per week and *is income earned measured in cedis per week Determine the value of the marginal utilities, when *= 138 and *:= 500. Hence estimate the change in utility if the individual works for an extra hour, which increases %3D earned income by GH¢15 per week Does the law of

7. An individual's utility function is given by U =1000x, + 450x, + 5x,x, – 2x – x where * is the amount of leisure measured in hours per week and is income earned measured in cedis per week Determine the value of the marginal utilities, when = 138 and *:= 500. Hence estimate the change in utility if the individual works for an extra hour, which increases %3D earned income by GH¢15 per week Does the law of

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.
AA Company produces and sells refrigerator magnets to be sold as novelty items by resorts. Last year, the company sold 198,400 units. The income statement for AA Company for last year is as follow: $992,000 545,600 $446,400 Sales Less: Variable expenses Contribution margin Less: Fixed expenses 180,000 $266,400 Operating Income How much was the margin of safety in revenue for last year? (Answer format: $123,456.78) * Your answer Suppose that the selling price decreases by 8 percent. How much is the revised breakeven point in units? (Answer format: 123.45) * Your answer
For an electric motor the demand is 0, 1, 2, 3, 4 per day with probabilities 1/8, 2/8, 1/8, 3/8, 1/8, respectively. If each electric motor sold returns 30 USD profit, calculate the expected profit.
Q7: An individual lives for only two periods and has preferences given by the follow- ing intertemporal utility function: U = Ing₁ +aln(1 -h₁) + [Inc₂+aln(1 - h₂)] (1) where, c₁, c₂ denotes consumption in period 1 and period 2 respectively h₁, h₂ denote the labour supply in period 1 and 2 respectively. Therefore 1-h is the amount of leisure time in period 1. The term 3 is the discount factor. The problem of the individual at period 1 is to choose consumption in both periods and labour supply in both periods subject to the following budget constraints: +8= wh and c₂= w₂h₂ + (1+r)s where s denote the saving, w denotes the wates and r denotes the real interest rate. (a) Provide an economic interpretation of the two budget constraints written above. (b) Combine the two budget constraints written above and prove the economic interpretation of of life time budget constraint. (c) Set the Lagrangean function and find the first order conditions with respect to C₁ C₂, hi and h₂. (d) Find the…
Let C = 40+ 0.8y and /= 10. The value of the marginal propensity to consume is O A. 40. OB. 0.4. OC. 0.8. OD. 8. NE
2. How many regular hours will someone need to work to earn $250 at $12.50/h? 3. Determine two equivalent fractions for 6/8. 4. 4 = 5. How much is 5% commission on $15 000 sales?
Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.) Weighted-average unit contribution margin $ 135,04
1. Consider a pure exchange economy with two goods and two consumers. Let F denote food and C denote clothing. Lacy has the utility function U(F, C) = F 1/3 C 2/3 . Roy has the utility function V (F, C) = F 2/3 C 1/3 . Each consumer has an initial endowment consisting of 9 units of F and 9 units of C. Normalize the price of F to one. Let P denote the price of C. (a) Is the initial endowment a Pareto efcient allocation of F and C between the two con sumers? Explain briefy. (b) What is each consumer’s demand for F and C as a function of P? [Hint: the wealth of each consumer is 9 + 9P.] (c) What is the price of C in a competitive equilibrium? (d) What is the allocation of F and C between the two consumers in a competitive equilibrium?
If, Total Fixed cost OMR 40000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the amount of profit if actual sales are OMR 120000?
Solve this attachment.
A consumer's utility only depends on the consumption of goods A and B according to the following Cobb - Douglas utility function: U(A, B) = A3/5 B 2/5. The price of goods A and B are $10 and $10, respectively. The consumer has a budget of $1500 that he can use to consume the two goods. a) Calculate the optimal bundle and maximized utility for the consumer. b) A new tax of $5 is imposed on the price of good B. Compute the new optimal bundle of good A and B for the same consumer. What is the utility loss due to the tax? c) Show that the consumer would prefer a lump sum income tax that raises the same revenue of $200 as the tax on good B.
When the sales price per unit decreases, the contribution margin per unit A. decreases B. increases OC. increases proportionately OD. remains the same 13

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