Q: (d) Find the royalty in each period. Show that, the discounted value of the royalty in each period…
A: (d) Royalty payments generally constitute a percentage of the net revenues obtained from the use of…
Q: If discount rate is 0.1, then the discount factor is?
A: Discount factor (PVF) can be calculated by using the following formula.
Q: Given that the marginal cost of a ‘backstop’ (e.g. solar energy) is MCb per unit of an exhaustible…
A: Energy economics is a study of the natural resources' generation, consumption, and transportation,…
Q: Gerry likes driving small cars and buys nearly identical ones whenever the old one needs replacing.…
A: given that, Cost of the car = $15,000 Depreciation rate = 30%
Q: A university spent $1.4 million to install solar panels atop a parking garage. These panels will…
A: The marginal cost refers to the increase in total cost when a greater quantity is produced. It…
Q: panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a…
A: An alternative way to express the rate of interest on an investment is to use a discount rate, which…
Q: Based on the best available econometric estimates, the market elasticity of demand for your firm’s…
A: The market elasticity of demand for a product is -3 The marginal cost is $150 The average total cost…
Q: State true/False # When there is diminishing returns to a factor, the value of both MP and TP falls
A: # The third phase of variable proportion is the DIMINISHING returns to factor. This phase is due to…
Q: A farmer finds that if she plants 70 trees per acre, each tree will yield 40 bushels of fruit. She…
A: A farmer grows crops to get a fair return. The produce of a farmer, however, depends on the yield of…
Q: suppose an industry consists of 10 identical firms with no fixed cost and marginal cost equal to MCi…
A: Given Market demand function in the industry: P=840-0.5Q ......(1) Each firm in the…
Q: Suppose that you can sell as much of a product (in integer units) as you like at $60 per unit. Your…
A: The difference between entire income and total costs is referred to as profit. The money made…
Q: The global microchip shortage is causing significant price increases for both new and used vehicles…
A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…
Q: Consider a generator who has a contract-for-difference with a consumer for a certain hour for 100 MW…
A: Profit is the difference between total revenue and total cost. The total revenue is the…
Q: If TC = 98 + 15Q + 6Q2 , what is the marginal cost at when Q=7? Enter as a value.
A: Total cost function: We need to find the marginal cost when Q is 7. Marginal cost is the rate of…
Q: A firm's marginal cost function is given by: 2 MC(q) = -9 If the future price of the firm's output…
A: Marginal cost The price to manufacture the second unit of output is known as the marginal cost.…
Q: Illustrate how NPW decision rules work?
A: Present value is defined as the current value of the amount of money that a person will receive in…
Q: expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at…
A: The marginal cost is the change in the total cost that arises when the quantity produced is…
Q: You have just been hired by a forestry company as a consultant. The company wishes to know whether…
A: Revenue(TR-total revenue) is the product of P(price) and Q(quantity sold). P and Q have a negative…
Q: If the opportunity cost of financial capital for HighFlyer Airlines is 6%, how much should the firm…
A: Answer in step 2.
Q: If the investment flow is I(t)-5000t0 5 calculate the capital formation from the end of first year…
A: The accumulation of capital is called capital formation and it is also termed as the investment in…
Q: 2. Suppose retail water demand is given by wa = 70-p and the marginal cost of retail water is mc =…
A: The difference in the overall cost of production resulting from creating or producing one more unit…
Q: A community has a nighttime energy demand of 50 megawatts but a peak daytime demand of 75 megawatts.…
A: A community has a nighttime energy demand of 50 megawatts but a peak daytime demand of 75 megawatts.…
Q: Derive in exactly five lines the following formula to calculate the cost of a European call option:…
A: The holder of a European call option has the right, but not the responsibility, to purchase the…
Q: 6) The profit function for sales of two models of trucks at a car dealership is given by (a, b) =…
A: Profit is maximized at the level of output where the marginal revenue equals the marginal cost. It…
Q: Given that demand for some product can be modelled by D(p) = 2022/p, for which objective should the…
A: The demand is the willingness to buy the quantity at certain time and place . It is directly and…
Q: A university spent $2 million to install solar panels atop a parking garage. These panels will have…
A: The breakeven point for an exchange or not entirely set in stone by contrasting the market cost of…
Q: When x thousand dollars are spent on labor and y thousand dollars on equipment, the output of a…
A: Given; Q(x,y)=240x3/8y5/8 and; x+y=200y=200-x .......equation a
Q: Suppose you own a store that sells top-of-the-line MP3 players. You have determined that the demand…
A: Demand function shows the relationship between price and quantity demanded. Ceteris Paribus, there…
Q: If TC = 297 +33Q, what is the marginal cost when Q=19?
A: Marginal Cost - It is defined as the change in total cost due to production of one more unit of the…
Q: Approximately how many hours per year will the solar panels need to operate to enable this project…
A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…
Q: plans are underway for a new stadium for a baseball team. City officials question the number and…
A: Given fixed cost = $4,500,000 , Variable cost = $ 150,000Customer may Purchase at $300,000
Q: y = x1% x2 and x 2 is fixed at 81; the cost of input x1 is w 1=5; the cost of input x2 is w 2 = 3; p…
A: x2 is fixed. Put the value of x2 into production function. Profit = revenue - cost Revenue = PY…
Q: A university spent $1.3 million to install solar panels atop a parking garage. These panels will…
A: Break-even refers to the point at which total costs equal total revenue, resulting in neither profit…
Q: The profit function is the same as in Question 40 and 41. Profit =200L+100K-10L^2-20K^2+20KL. After…
A: Profit is a financial metric that represents the difference between the revenue earned by a business…
Q: university spent $1.3 million to install solar panels atop a parking garage. These panels will have…
A: The marginal cost implies the increment in production costs generated by the production of…
Q: Suppose that you can sell as much of a product (in integer units) as you like at $61 per unit. Your…
A: Perfect competition is a market structure in economics that serves as a benchmark for analyzing and…
Q: The company needs to decide whether to continue with the project. What is the marginal cost of…
A: Marginal cost is the additional cost incurred for producing one more unit of a good or service.
Q: Given - Qd=525−3pQs=265+2pTC=23Q2+150Q D)Solve for Price and Quantity that maximizes profit. What…
A:
Q: given Q=2P-500 what is P? write down P as a fuction of Q
A: The objective of the question is to express P as a function of Q from the given equation Q = 2P -…
Q: company manufactures two products. If it charges price p1 for product 1 and price p2 for product 2,…
A: *Answer: . The company manufactures two products and its TR (total revenue) will be the sum of…
Q: Marginal Cost of: C = 10 + 10q – 4q2 + q3
A: The marginal cost represents the change in the total cost of production that results in one new unit…
Q: Combination Fruit Candy 1500 1350 100 1100 175 800 225 450 350 E 500 Use the table to answer…
A: An opportunity cost refers to an alternative lost while selecting the best alternative.
Q: You are the CEO of a company. You have an opportunity to undertake the following project: pay $1,000…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Find the marginal efficiency of the capital when the prospective yield is 6036 and the supply price…
A: As the question, Prospective yield = 6036 Supply price is valued as = 70 Marginal Efficiency of the…
Q: Assume you own a copper mine. The mine has total known reserves of 500 (million metric tons). The…
A: Intertemporal choice is the choice problem in economics. It is the process by which consumers make…
If the supply price is 14 and the expected yield is 796, what is the capital's marginal efficiency?
Step by step
Solved in 3 steps
- What is the maximum profit when the the profit-versus-production function is given below? P is profit and x is unit of production P = 200,000 – 1x- (1.1/(X+1)) to the 8th power?A university spent $1.5 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 10%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? 1,468.26 2,936.51 3,230.16 4,111.11 If the solar panels can operate only for 2,643 hours a year at maximum, the project Continue to assume that the solar panels can operate only for 2,643 hours a year at maximum. break even. In order for the project to be worthwhile (1.e., at least break even), the university would need a grant of at least,Question 7 If TC = 88 + 140Q, what is the marginal cost when Q=29? Enter as a value. |
- A university spent $1.6 million to install solar panels atop a parking garage. These panels will have a capacity of 700 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? 1,564.62 2,503.39 625.85 If the solar panels can operate only for 1,408 hours a year at maximum, the projectwould break even. Continue to assume that the solar panels can operate only for 1,408 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at leastSuppose that you can sell as much of a product (in integer units) as you like at $60 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC = 7q This means that each unit costs more to produce than the previous one (e.g., the first unit costs 7*1, the second unit (by itself) costs 7*2, etc.). If fixed costs are $80, what is the optimal integer output level? Please specify your answer as an integer. If fixed costs are $80, what is the profit at the optimal integer output level? Please specify your answer as an integer.(You will need to use a spreadsheet to tackle these questions.) 1. How much of q can be produced for £60,000 if the total cost function is TC = 86 + 152q − 12q2 + 0.6q3? 2. What output can be produced for £150,000 if TC = 130 + 62q − 3.5q2 + 0.15q3? 3. Solve for x when 0 = −1,340 + 14x + 2x2 − 1.5x3 + 0.2x4 + 0.005x5 − 0.0002x6
- A company manufactures two products. If it charges price p1 for product 1 and price p2 for product 2, it can sell quantities q1 = 55 − 3p1 + 2p2 and q2 = 75 + 2p1 − 2p2 for products 1 and 2, respectively. It costs the company $20 to produce a unit of product 1 and $65 to produce a unit of product 2. Suppose the company must produce a minimum of 20 units of each product. What prices should it charge for product 2 to maximize profit?You are the marketing manager of the Business Unit (BU) that produces polystyrene (which is an input to making lightweight rigid foam). The current Demand/Supply balance, as measured by the ICIS price, is $800 per ton of polystyrene. The BU has 2 plants and can produce a total of 1800 tons. At full capacity utilization, the BU’s average variable cost equals $1300/t and its average total cost equals $1700/t.Plant 1 has a capacity of 600 tons and a marginal cost of $900/t. Plant 2 has capacity of 1200 tons and a marginal cost of $1500/t. Due to exit of one competitor, you expect next year’s polystyrene ICIS price to increase to $1200. 1. How much volume of polystyrene do you expect to produce next year, if any? 2. What is your expected contribution margin for next year? 3. What is your expected profit for next year?Philippines You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, the Philippines, and Singapore as described in the following table: Malaysia Probability Units Philippines Probability Units Singapore Probability Units Big Success Level 0.3 1,100,000 0.3 1,300,000 Mediocre Failure 0.2 352,000 0.3 650,000 0.1 0.7 600,000 360,000 0.5 0 0.4 0 0.2 0 The product sells for $20, and each unit has a constant marginal cost of $16. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $500,000.
- If marginal cost is given by dc/dq= q? + 7q + 6, and fixed costs are 2500, determine the total cost for producing 6 units.A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing)=$47,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $? (Round to the nearest dollar.) The unit price at the point of optimal demand is $? per unit.