Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 6RQ
To determine
The difference between a dividend return and a
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What is the process of Calculating the Return on Invested Capitalfor Mixed Investments?
2.6 Isabel runs her family's small pineapple processing plant,
which takes fresh pineapples and cuts them into pine-
apple rings, spears, and chunks. The capital stock of the
firm consists of three machines of various vintages, each
of which can the pineapples into any of the three
different forms. All of the machines are in excellent condi-
process
tion, and all machines can be running at the same time.
Cost of Processing
per Pineapple
Maximum Total Capacity
(Pineapples) per Day
Machine 1
$ 0.10
250
Machine 2
0.25
400
Machine 3
0.50
500
a. Assume that “cost of processing" includes all labor and
materials, including the owner's wages. Assume further
that Isabel's family signed a long-term contract (20 years)
with a service company to keep the machines in good
repair for a fixed fee of $1,825 per year, or $5 per day.
(1) Derive the firm's marginal cost curve.
(2) Derive the firm's total cost curve.
b. At a price of $0.40, how many pineapples would the
company process? What would total…
Does the company have flat earnings or are they on a consistent upwardtrend with good margins?
Chapter 17 Solutions
Macroeconomics (Fourth Edition)
Knowledge Booster
Similar questions
- Rashid is studying Masters Degree in Sultan Qaboos University, Muscat. His research topic is "The effect of capital structure on the profitability of the selected manufacturing companies in the Sultanate of Oman". From the following research methods, suggest a suitable method to Rashid for conducting his research? O a. Experimental method O b. Survey method O c Case study method O d. Archival methodarrow_forwardQ1. a c d thank youarrow_forwardCalculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Input all amounts as positive values.) EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return Europe 0.60 20% 1.10 0.48 18% Australasia 0.10 18 0.50 0.20 16 Far East 0.30 25 1.30 0.32 16arrow_forward
- Engineering economic book. "Frank bought a house for $100,000. He put 20% down and borrowed the rest from the bank. However, the value of the house has now increased to $160,000 and he has paid off $20,000 of the bank loan. What is the equity that Frank has in his homearrow_forwardhawhas the 'gig economy' impacted variable and fixed costs for businesses.Illustratewith exmple https://www.investopedia.com/terms/g/gig-economy.asparrow_forwardState if the given statement is True/False As soom as MC starts rising, AVC also starts rising.arrow_forward
- What is the rate of return when 12 shares of Stock A, purchased for $22/share, are sold for $465? The commission on the sale is $9. 4 F4 Copyright © 2003-2022 International Academy of Science. All Rights Reserved. F5 Rate of Return Enter the appropriate value into the formula to calculate the rate of return. A F6 5 RTY 6 & Total Cost = $273 Profit= $192 [?] Rate of Return = F7 7 * = F8 8 profit or loss total cost DELL F9 9. prtsc F10 home F11 Enter end F12 +11. Insertarrow_forwardThe Evanec Company's next expected dividend, Ds, is $2.76; ts growth rate c 4; and ts common stock now sells for $28.00. Nex stock (externa equity) can be sald to net 532.30 per share. a. What is Evanec's cost o retained earmings, r? Do not round intermediate calculations, Round your answer to two decimal places. places.arrow_forwardWarehouse EfficiencyPersonal Care Limited(PCL) is a large and premier FMCG company in India with a turnoverof about Rs 2000 crore. It has 85 production plants spread over the whole country, producingabout 1200 products ranging from personal care to household goods.The company has four of its own mother warehouses situated in the four zones of north, south,east and west that receive products from almost all the plants on a regular and consignmentbasis in containers by road. These warehouses are responsible for taking care of stocks, orderplacement for next arrivals, loading and unloading, protective storage, stock recording, apartfrom order processing and trans-shipment of goods to C&F agents of respective zone whosenumbers come around 150 per warehouse.After receiving goods from various plants, these warehouses are first entered into the computerfor inventory recording purposes. Suitable storage location spaces are then assigned after takinginto consideration the quantity to be…arrow_forward
- How do firms measure their profit? by the sum of total sales revenue by the total value of outstanding shares of stock by subtracting total costs from total revenues O by subtracting total revenues from total costsarrow_forwardWhich of the following statements is true about current and capital and financial acocunts? O A. Their sum equals zero B. Their sum is always negative C. Their sum is always positive D. They are unrelatedarrow_forwardThe best economic use of excess cash generated by a firm over the long term would be to?A. reinvest by the firm in its core businessB. pay dividends and/or buy back stockC. acquire other companiesD. none of the above typed and correctly please. I ll rarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningManagerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning