Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn:              Sales revenue = 200; Payments to labor = 40; Payments to land = 160 Suppose price of corn increases by 20%, the price of automobiles increases by 10%, and the wage increases by 15%. Calculate the Nominal Percentage change on Rental of Land and put your answer in the box below.

Most economies have a goal of maximizing the average consumption per period. Assume that during each year, an economy saves the same (to be determined) percentage S of its production. During a year in which the beginning capital level is K, a quantity K1y2 of capital is produced. If the economy saves a percentage S of its capital, then during the current year it consumes (1 2 S)K units of capital and, through savings, adds (SK) 1y2 units of capital. Also, during any year, 10% of all capital present at the beginning of the year depreciates or wears out. a. What annual savings percentage S maximizes the long-run average consumption level? Assume that year 50 represents the long run, so that the objective is the consumption level in year 50. You can assume the initial capital is 1 (for some appropriate measurement unit). b. Use SolverTable to see how the optimal value of S depends on the annual depreciation rate.

Interpret this value. Enter your answer for dollar value in whole dollar. For example, an answer of $1.20 million should be entered as 1,200,000, not 1.20. From a base  level of $   , each one percent increase in  results in a  percent  in  .

1 We learned how to use the Scenario Manager to view the results of a model when multiple 2 assumptions are changed. Using the Assumptions below, build the pro forma (in yellow) model and then run the 3 Scenarios using the the inputs in green below the pro forma. Your answer should show the After Tax Profits per Year (Summary range should be B25:F25). 4 5 6 Assumption 7 Tax Rate 8 Unit Sales 9 Sales Growth 10 Year 1 Price 11 Year 1 Cost 12 Cost Growth Rate 13 Price Growth Rate 14 15 16 17 Unit Sales 18 unit price 19 unit cost 20 21 Revenues 22 Costs 23 Before Tax Profits 24 Tax 25 After Tax Profits 26 27 28 Scenario 29 Accelerated Growth 30 Sustainable Growth 31 Moderate Growth 32 Moderate Decline 33 Accelerated Decline 34 35 Range name taxes Year1 units salesgrowth Year1 price Year1 cost costgrowth pricegrowth 1 200,000 $75.00 $60.00 $0 $0 Unit Sales 300,000 250,000 225,000 180,000 165,000 18.0% 200,000 3.5% $75.00 $60.00 2 3.0% 5.0% $0 $0 Year 3 $0 $0 Sales Growth Cost Growth 10.0%…

For questions 5-6, please classify the costs of each of the following as variable, fixed, mixed, or step. Sales volume is the cost driver. 5. Real estate taxes A) Variable В) Fixed C) Mixed D) Step Your answer is Explain your answer: 6. Electric power in a factory A) Variable B) Fixed с) Mixed D) Step Your answer is Explain your answer:

If accounting profit is $400,000 greater than economic profit, what do implicit costs equal?

Your answer is incorrect.  Divide the estimated average annual income by the average investment. Investment cost plus residual value, divided by two, equals average investment. Can you please redo it? Thanks

Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$

Calculating LIFO, FIFO, Income and Cash Flows An acquaintance has proposed the following business plan to you. A local company requires a consistent quantity of a commodity and is looking for a reliable supplier. You could become that reliable supplier. The cost of the commodity is expected to rise steadily over the foreseeable future, but the company is willing to pay more than the price that is current at the time. All you would need to do is make an investment, purchase the inventory and then deliver inventory to the company over the following year. One complication is that the commodity is available for purchase only seasonally, so at the end of every year you would need to purchase the supply for the following year. The customer pays promptly on delivery. An initial cash investment of $62,000 would be used to purchase $50,000 of inventory in December 2019. The remaining cash would be held for liquidity needs. In the following year, you would deliver this inventory to the customer.…

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?