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Find the Marginal efficiency of capital if the Prospective yield is $600 the supply price is $280 in the given question.
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- Find the marginal efficiency of the capital when the prospective yield is 6036 and the supply price is 70A firm learns of an investment opportunity that will increase future revenue, two years from now, by $121 million. The marginal resource cost of the physical capital today is $100 million dollars. Should this firm make this investment at an interest rate of 10% Why? Using the information from this scenario a . What is the discounted percentage for this investment? What information does it provide? b . Other things being equal, could this investment be made at a higher interest rate? Lower? Why? c.Other things being equal, could this investment be made for a longer term? Shorter term ? Why?State true/False # When there is diminishing returns to a factor, the value of both MP and TP falls
- firm decides to invest X units of capital in Project A and Yunits of labour in Project B. iv. The expected return for each unit of investment is $500 in Project A and $1500 in Project B. However in order to meet the expectations of the firm's ethical and environmental policy values of X and Y must satisfy the constraint x+y-5x-6y= 210. How many units of each type should firm buy in other to maximize total volume? What is the implication of a unit change in investment in capital and (or) Labour Economic Analysis?You are the CEO of a company. You have an opportunity to undertake the following project: pay $1,000 today and receive $1,300 a year from now. If the interest rate is 30%, the net gain of the project (cost minus benefit) is: A) $440. B) $200. C) $166. D) $0.What is the principal goal of a firm like CorpCo? As a managerial economist how would you define an ‘optimal decision’ for a firm? The firm is considering investing $300,000 for a period of five years. Expected earnings are $50,000 in year 1, $60,000 in year 2, $75,000 in year 3 and $90,000 in years 4 and 5. Should the firm decide to invest, if the interest rate is 8%? The firm paid a dividend of $6 during the past year and it estimates dividends to grow at 7% annually in the future. Firm’s stockholders require a rate of return of 14%. What would be the expected value of each share today? Which are the two basic risks affecting returns when shareholders value any business? Briefly explain.
- At a certain factory, the daily output is approximately 40K¹/3¹/2 units, where K denotes the capital investment measured in units of $1,000 and L denotes the size of the labor force measured in worker-hours. Suppose that the current capital investment is$125,000 and that 900 worker-hours of labor are used each day. Use marginal analysis to estimate the effect that an additional capital investment of $1,000 will have on the daily output if the size of the labor force is not changed.Based on the following information: The investment cost is paid in full in quarter 0, and the cost of the factory is 100000 while the cost of the research is also 100000. The factory has a lifetime of 20 quarters (5 years) and the value of the factory at the end of quarter 20 is 0 Only green jetpacks should be produced at the factory throughout its lifetime. There is no investment in research to streamline production or material consumption. Suppose the quarterly demand in the market is constant and given at P = 338 - 0.018 * Q, where P is price and Q is the number of jetpacks in demand. Assume P is 248 USD and Q is 5000. There are 5 competitors in the market (including you), and all sell the same number of jetpacks each quarter at the price of 248 each. You produce as much as you sell. The costs associated with the quarterly production at the factory are given at K = 178 * Q + 20000, where 178 * Q is direct labor cost and materials, and 20000 is quarterly maintenance cost when Q is…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 =10 Which expression is the correct expression of profits? T = X1 2 x 2 4 - x 1 x 2 TT = 10x1½ 81% - 5x1 -3(81) = 30x12 . 5x1 - 243 TT = xq% 814 - 5x1 -3(81) = 3x1½ - 5x1 - 243 п-х181- х1- 81 %3D 3х1 -х1-81
- The company manufactures game tables which are sold for $60 each. To produce each game table, the company incurs $28 of variable costs and $12 of allocated fixed costs. A buyer in Puerto Rico offers to purchase 3,000 tables at $36 each. The Restoration Hardware Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?Kieron is currently working as an automobile detailer who earns $45,000/year. He currently has living costs of $30,000/year. Kieron has recently received a job offer interstate which offers $50,000 per year, where he expects his living costs to be $33,000/year. Select the item from the list provided to make the following statements true. By choosing to stay in his current job, Kieron is making a / an 1. Accounting profit 2. -$2000/year 3. Total cost Kieron's economic profit/loss by choosing to remain in his current job is Kieron's explicit cost if he chose to take the job offer interstate would be 4. Economic profit 5. Economic loss 6. A normal profit 7. $12000/year 8. $33000/year 9. Explicit cost 10. $45000/year 11. $1900 12. Implicit costH1. Mimi's is developing a Fiery Habanero muffin, which will NOT compete with anything Mimi's currently offers. Unit contribution margin for the new Fiery Habanero muffin would be $3.38. Contribution margin for the company's Banana Nut muffin is $3.25 per unit. Mimi's expects to sell 45,000 units of the new muffin, if it is introduced. Compute weighted contribution margin for the new muffin. (Rounding: penny.)