Economics

Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6Y. In addition, assume G=0. In this case, equilibrium investment is:

Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6Y. In addition, assume G=0. In this case, equilibrium investment is: Group of answer choices 3,000. 2,000. 1,500. 2,500. EXPERT ANSWER Answer Option 3rd is correct Given GDP (Y) is 5,000 C = 500 + 0.6Y G=0 Find equilibrium investment Output equation …

Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6Y. In addition, assume G=0. In this case, equilibrium investment is: Read More »

Problem 4 Part 2 [15] 0 points possible (ungraded) For a monopolistic company, the demand curve is given by the function P = 160 – 8Q, where P is the price per unit and Q is the total amount of units produced. The cost per unit, C, also depends the total amount of units produced and the relation is given by C = 120 – 6Q. That is, the price per unit decreases linearly as the number of units produced increases. a. Find the total profit U as a function of Q. Remember that Total profit = Total Revenue – Total Cost, where Total revenue is equal to price per unit times the total amount of units and Total Cost = cost per unit times the total amount of units. [3] b. Find the value of which maximizes the total profit U. Round your answer to the nearest integer. [8] c. Find the maximum value of the profit. [4]

EXPERT ANSWER Demand : P = 160 – 8QCost : c = 120 – 6Q a) Profit = Revenue – CostRevenue = P*Q = 160Q – 8Q2Profit : U = 160Q – 8Q2 – 120 – 6Q= 154Q – 8Q2 – 120Total profit function : U = 154Q – 8Q2 – 120   b) Maximizing total profit :dU/dQ = …

Problem 4 Part 2 [15] 0 points possible (ungraded) For a monopolistic company, the demand curve is given by the function P = 160 – 8Q, where P is the price per unit and Q is the total amount of units produced. The cost per unit, C, also depends the total amount of units produced and the relation is given by C = 120 – 6Q. That is, the price per unit decreases linearly as the number of units produced increases. a. Find the total profit U as a function of Q. Remember that Total profit = Total Revenue – Total Cost, where Total revenue is equal to price per unit times the total amount of units and Total Cost = cost per unit times the total amount of units. [3] b. Find the value of which maximizes the total profit U. Round your answer to the nearest integer. [8] c. Find the maximum value of the profit. [4] Read More »

Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000, and the used equipment was salvaged for $4000. What rate of return did the company make on this product? (20 points) (You should use an appropriate excel function) 4.

EXPERT ANSWER Year Cost Revenue Net Cashflow 0 -30000 -30000 1 -18000 27000 9000 2 -18000 27000 9000 3 -18000 27000 9000 4 -18000 27000 9000 5 -18000 31000 13000 IRR 17.85% Arrange the data as above, use IRR function and select the net cash flow which yeilds 17.85 percent

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p=$35 + 2800/D – 4900/D^2, for D>1.

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p=$35 + 2800/D – 4900/D^2, for D>1. Where p is the price per unit in dollars and D is the demand per month. The …

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p=$35 + 2800/D – 4900/D^2, for D>1. Read More »

A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of operation is estimated at​$800,000 per month while the variable cost is​ $155 per thousand board feet of plywood. The selling price will depend on how much will be produced and sold and is determined by the​ relationship, price per thousand board​ feet, p​ = $600​ – 0.05D, where D is the amount produced and sold in thousands of board feet. Determine the monthly production that will maximize the total revenue and calculate the corresponding total profit per month. Determine also the corresponding average production cost per thousand board feet of plywood at this level of production.

A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of operation is estimated at​$800,000 per month while the variable cost is​ $155 per thousand board feet of plywood. The selling price will depend on how much will be produced and sold and is determined by the​ relationship, …

A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of operation is estimated at​$800,000 per month while the variable cost is​ $155 per thousand board feet of plywood. The selling price will depend on how much will be produced and sold and is determined by the​ relationship, price per thousand board​ feet, p​ = $600​ – 0.05D, where D is the amount produced and sold in thousands of board feet. Determine the monthly production that will maximize the total revenue and calculate the corresponding total profit per month. Determine also the corresponding average production cost per thousand board feet of plywood at this level of production. Read More »

A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40. The fixed cost that can be allocated to the production of fireworks is negligible. The price charged per unit will be determined by the equation p=$180−(5)D, where D represents demand in units sold per week.

A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40. The fixed cost that can be allocated to the production of fireworks is negligible. The price charged per unit will be determined by the equation p=$180−(5)D, where D represents …

A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40. The fixed cost that can be allocated to the production of fireworks is negligible. The price charged per unit will be determined by the equation p=$180−(5)D, where D represents demand in units sold per week. Read More »

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is $130. The price charged will be determined by p = $600 – (0.05)D per 1,000 board feet.

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is $130. The price charged will be determined by p = $600 – (0.05)D per 1,000 board feet. a) …

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is $130. The price charged will be determined by p = $600 – (0.05)D per 1,000 board feet. Read More »

A large wood product company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is $131.50. The price charged will be determined by 600 – 0.05x, where x is the monthly sales volume. Please show a clear, complete and step-by-step solutions as well as essential formulas to be considered

A large wood product company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is $131.50. The price charged will be determined by 600 – 0.05x, where x is the monthly sales volume.Please …

A large wood product company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is $131.50. The price charged will be determined by 600 – 0.05x, where x is the monthly sales volume. Please show a clear, complete and step-by-step solutions as well as essential formulas to be considered Read More »

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is$131.50. The price charged will be determined by p=$600-(005) D per 1,000 board feet (a) For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume (b) what is domain of profitable demand during a month?

A Large Wood Products Company Is Negotiating A Contract To Sell Plywood Overseas. The Fixed Cost That Can Be Allocated To The Production Of Plywood Is $900,000 Per Month. The Variable Cost Per Thousand Board Feet Is$131.50. The Price Charged Will Be Determined By P=$600-(005) D Per 1,000 Board Feet (A) For This Situation, Determine …

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is$131.50. The price charged will be determined by p=$600-(005) D per 1,000 board feet (a) For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume (b) what is domain of profitable demand during a month? Read More »