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Find the marginal efficiency of capital if the Prospective yield is 720 and the supply curve is 40?
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- Please explain both true and false When a firm's resources are not specialized, its production possibility frontier (PPF) is a straight, downward sloping line. True or False Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.Consider a firm with marginal costs of MC=70+2Q. The firm is considering investing in research and development to find a production process that will allow it to make its output using less raw material inputs. The new production process is expected to lower the firm's marginal costs to MC=(70-10)+2Q. The firm is currently producing 60 units per year and plans to keep its output level the same after it innovates. Calculate the annual incentive for the firm to make the research and development investment.Clearly explain the nature of the efficient markets hypothesis (EMH) and clearly distinguish between weak form, semi-strong form, and strong form efficiency. In your answer you should discuss the implications of the three forms of market efficiency for market practitioners.
- Find the marginal efficiency of the capital when the prospective yield is 6036 and the supply price is 70Consider the problem of a firm who produces output in the present and the future period. This firm is endowed with K units of capital in the current period which is exogenously given. The firm can, however, choose future capital stock K′ through investment I. In particular, we have the following capital accumulation equation: K′ =(1−d)K+I. The firm’s profit is π = Y − wN − I in the current period, where Y = zF(K,N) is output, w is wage, and N is employed labour. Similarly, the profit in the future period is given by π′ =Y′−w′N′+(1−d)K′,whereY′ =z′F(K′,N′)is future output,w′ is future wage, N′ is future labour demand, and (1 − d)K′ is the value of capital left over after production in the future period. The firm maximizes the present value of profits given by V=π+(π'/1+r) Answer the following questions. Write down the firm’s profit maximization problem. Derive labour demands for both the current period and the future period. Suppose the production function is given byY…Consider a household with a wealth endowment of $5, and a MB of consumption of $1.71, 1.53, 1.39, 1.29 and 1.23 for 1st, 2nd..... unit of consumption C. A firm faces MR at $1.66, 1.52, 1.42, 1.34 and 1.28, for the 1st, 2nd..... unit of capital, K. In this market, if the interest rate is 41%, then the demand for funds is units and the supply of funds is. units. O 2;2 O 2; 3 O 3:3 O 3: 2 (7
- advanced microeconomics, uncertaintyIf the marginal personal tax rate imposed on interest income paid to bondholders were to increase, holding the corporate tax rate and the personal tax rate on payments to equity (e.g., taxes on dividends), what is the impact on the marginal benefit of debt to the corporation? How might this effect the optimal amount of debt the firm should have in its capital structure?Effort Investment Risk Farmer's ownership Fixed land rental Sharecropping Farmer E's production function is 20 x VI (Y is the final output, Lis labor input) Y = According to theory, E's effort will be the lowest under which ownership? ( you should be able to answer this question without calculation ) According to theory, E will be facing the lowest level of risk under which land ownership? Why? Assuming E is working under a fixed land rental contract, with a yearly rent of 50. His twin brother F, who has exactly the same production function, is working with a different landlord who charges 20% of the yearly revenue. • (calculation) What is farmer E's profit function? • (calculation) What is his brother F's objective function? • How is the optimal effort defined? (only explain the concept) • (calculation) How much labor would E invest in his land (He knows exactly how his profit function looks like ) ? How much profit could he make under optimal effort? Assume his twin brother F doesn't…
- Given a demand function of P = 119 - 7Qd and supply of P = 38 + 4Qs, the utility function U = Qx0.4Qy(1-0.4) and the consumer budget Income = 5Qx + 6Qy along with the firm production function Q = K0.4L0.6 with the isocost 224 = 23K + 13L. The economic growth factor is 1.8. What is the total utility of HH given the level of factor income? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).Dynamic efficiency refers to an allocation such that no further shuffling of extraction across periods will increase the sum of the present discounted values of the firm’s stream of future profits. If there are just two periods in the story, explain why the allocation of a scarce exhaustible resource that maximizes the present discounted value of profits across two periods will involve more extraction in the first period and less extraction in the second period, rather than an equal amount in both periods.Discuss the contributions of Paul A. Samuelson to capital market efficiency
