1.) What is the optimal quantity for the first period?(round answer to nearest whole ton)2.) What is the optimal quantity for period 5?(round answer to nearest whole ton)3.) What is the MNB for period 1?(round answer to nearest whole number)4.) What is the PV [MNB] for period 5?(round answer to the nearest whole number.)5.) What amount, in tons, must the Total Reserve be in order for each period to optimally consume the same quantity? (I.e. zero user cost)round answer to nearest whole ton. Hint: you don't need excel to solve this problem To help you get started, here's an example of what your new spreadsheet mightlook like (the numbers are slightly different than the problem):EBDDHMarket Conditions: MB-38030MC2810Objective Function:010MND35240Discount RateTotal Reserve0.075120Years Out:PV MNBOConstraintConstraint 2:EDCH105009352 283461 2280825 153.594 147.788710MN068.6539RHSYou should add the necessary columns and use the drag feature to expand yourtable.As you see, our objective function is now Q1 + Q2 + Q3 + Q4 + Q5 = KWe also have the following new constraint that needs to be included:MNB₁PV[MNB₂] = PV[MNB3] = PV[MNB₁] = PV[MNB,Notice that we are not able to program this equation into our table. The trickhere is to see that there are really 4 conditions here we need to satisfy:1. MNB₁ = PV[MNB₂]2. PV MNB2] = PV[MNB3]3. PVMNB4. PV MNBPV MNB]PV MNB,]Use the same method as Constraint 2 and add 3 additional constraints.

References:1.Aydin, R., Kwong, C. K., Geda, M. W., & Okudan Kremer, G. E. (2018). Determining…

Answered: To help you get started, here's an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Related questions

Question

1.) What is the optimal quantity for the first period? (round answer to nearest whole ton) 2.) What is the optimal quantity for period 5? (round answer to nearest whole ton) 3.) What is the MNB for period 1? (round answer to nearest whole number) 4.) What is the PV [MNB] for period 5? (round answer to the nearest whole number.) 5.) What amount, in tons, must the Total Reserve be in order for each period to optimally consume the same quantity? (I.e. zero user cost) round answer to nearest whole ton. Hint: you don't need excel to solve this problem

To help you get started, here's an example of what your new spreadsheet might
look like (the numbers are slightly different than the problem):
E
B
D
D
H
Market Conditions: MB-
380
30
MC
28
10
Objective Function:
01
0
MND
352
40
Discount Rate
Total Reserve
0.075
120
Years Out:
PV MNB
O
Constraint
Constraint 2:
ED
CH
105
0
0
9
352 283461 2280825 153.594 147.7887
1
0
M
N
068.6539
RHS
You should add the necessary columns and use the drag feature to expand your
table.
As you see, our objective function is now Q1 + Q2 + Q3 + Q4 + Q5 = K
We also have the following new constraint that needs to be included:
MNB₁
PV[MNB₂] = PV[MNB3] = PV[MNB₁] = PV[MNB,
Notice that we are not able to program this equation into our table. The trick
here is to see that there are really 4 conditions here we need to satisfy:
1. MNB₁ = PV[MNB₂]
2. PV MNB2] = PV[MNB3]
3. PVMNB
4. PV MNB
PV MNB]
PV MNB,]
Use the same method as Constraint 2 and add 3 additional constraints.

Definition Definition Capital reserves held by banks or financial institutions over and above the reserves that are required to be maintained by the regulator toward its liabilities and for internal controls. For commercial banks, excess reserve is the amount over the standard reserve as decided by the central bank. These excess reserve funds are available in the form of cash and cash equivalents.

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