Q: determine the value of the firm
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Q: Find the marginal efficiency of the capital when the prospective yield is 6036 and the supply price…
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A: Company L U EBIT 1,00,000 1,00,000 Debt (D) 500,000 Nil Ke 12% 8% Kd 5% Nil
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Q: A firm’s current profits are $900,000. These profits are expected to grow indefinitely at a constant…
A: Opportunity cost is considered the value of the next best alternative while making a decision.
Q: Find the marginal efficiency of capital if the prospective yield is 291 and the supply price is 52.
A: Gradually supply price is denoted to be as that consecutive price which relates to the amount of the…
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Find the value of marginal efficiency of capital if the prospective yield is 781 and the supply price 362
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- ect of the utility commission's ruling on the profitability of the firm? 15 A company estimates that the demand for its product fluctuates with the price it charges. The demand function is q = 280,000 – 400p where q equals the number of units demanded and p equals the price in dollars. The total cost of producing q units of the product is estimated by the function C = 350,000 + 300q + 0.0015q? (a) Determine how many units q should be produçed in order to maximize annual profit. (b) What price should be charged? (c) What is the annual profit expected to equal? 16 Solve the previous exercise, using theState true/False # When there is diminishing returns to a factor, the value of both MP and TP fallsy = 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
- (a) A retail company has a marginal profit curve given by: MP =-2Q 2+ 160Q + 2145. Determine the level of production, or range of production at which the company will have: (i) Increasing returns (ii) Decreasing returns (iii) Negative returns (iv) Its maximum profit (b) A production process varies only with raw materials, as all other inputs are fixed. The cost of a shipment of 8kg of raw materials is fixed at $85. It takes 5kg of raw materials to create one item of output, Q. The marginal revenue for this production process is expressed by: MR = =Q 2 + 520 – 576. 2+52Q Determine the optimal amount of raw materials to be used in this production process. (c) A production process varies with both labour, L and raw materials, M. The production function is given: Q = 1.25L 0.38 +0.9M0.68 Current production level is Q= 800 items and marginal profit is given as a fixed $16.50. Determine what profit can be expected if: (i) Labour is increased by 25%. (ii) Both labour and raw materials are…When deciding upon the optimal amount of capital, a firm will decide to purchase additional capital if (CV) When deciding upon the optimal amount of capital, a firm will decide to purchase additional capital if the cost of capital falls below the previous period's cost the marginal benefit of capital equals or exceeds the marginal cost of the capital the marginal benefit of capital is less than the marginal cost of the capital the additional capital will add necessitate hiring more laborKieron 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 cost
- 3-3 Hidden Cost of Capital Does your company charge your division for the capital that it uses? If not, does this lead to bad decisions? What can be done to fix the problem? Compute the profit consequences of the change.If the investment flow is I(t)-5000t0 5 calculate the capital formation from the end of first year to the end of the Fourth year If the demand function is P=60-2Q , find an expression for TR in terms of Q Find the value of Marginal Revenue at ()Q = 5 (1)Q=10The Night Owl Restaurant generates sales of $1,000,000 a month with variable costs of 35%. The Kobe beef burger is one of the restaurants’ best selling menu items with a price of $13 and a food cost of 30%. The menu has 20 item and total sales average 20,000 menu items a month, of which 10% are Kobe beef burgers. What is the profit factor for the Kobe beef burger 1.20 0.56 0.49 1.50
- A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25If You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. then a yearly normal return for your computer software fırm would be: Select one: a. 40,000 O b. 20,000 O c. 80,000 O d. 90,000 O e. 60,000Paramount Electronics has an annual profit given by P = -100,000 + 5,000g - 0.25q? dollars, where q is the number of laptop computers it sells each year. The number of laptop computers it can make and sell each year depends on the number n of electrical engineers Paramount employs, according to the equation q = 30n + 0.01n². The average profit P per computer is given by dividing the total profit P by q. P=- 100,000 + 5,000 – 0.259 dollars Determine the marginal average profit, dP at an employee level of 15 engineers. HINT [See Example 4.] (Round your dn answer to the nearest cent.) dP = $ In = 15 dn Interpret the result. At an employment level of engineers, Paramount will increase its average profit per computer by per additional engineer hired. %24