On the open market, the quantity of gasoline bought can be determined by equating the demand and supply equations, resulting in a quantity of 0.5 gallons. However, for societal cost-effectiveness, the quantity of gasoline should be 0.8 gallons. The total loss in this market is $0.56.
To find the quantity of gasoline bought on the open market, we equate the demand and supply equations: 5 - 4Q = 2 + 2Q. Solving this equation, we get Q = 0.5 gallons. Therefore, on the open market, 0.5 gallons of gasoline would be bought.
However, for societal cost-effectiveness, we need to consider the external use of gasoline. In this case, the external use is given as $1.2 gallons. To determine the socially optimal quantity, we add the external use to the quantity bought on the open market: 0.5 + 1.2 = 1.7 gallons. Therefore, for societal cost-effectiveness, the quantity of gasoline should be 1.7 gallons.
The total loss in this market can be calculated as the difference between the social cost and the price paid on the open market. The social cost is the sum of the price and the external use: 2 + 1.2 = 3.2 dollars. The price paid on the open market for 0.5 gallons is 5 * 0.5 = 2.5 dollars. Hence, the total loss is 3.2 - 2.5 = 0.7 dollars or $0.56.
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when economic losses are present in a market, firms will tend to
When economic losses are present in a market, firms will tend to adjust their production levels in order to minimize those losses. This can be achieved in a number of ways. Firstly, firms may reduce their output by cutting back on the amount of goods or services they produce.
This allows them to lower their variable costs, which are the costs associated with producing each unit of output.
By reducing output, firms can reduce their variable costs, which in turn reduces their total costs and their losses.
Alternatively, firms may try to increase their prices in order to improve their profit margins.
However, this is often difficult to do when economic losses are present, as there is typically downward pressure on prices as competitors try to maintain market share.
In addition, increasing prices may lead to further reductions in demand, which can exacerbate economic losses.
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Farhana approaches the Islamic bank and applies for financing under the concept of Bai Bithaman Ajil. Let us say the purchase price for the house is RM800,000 and profit rate is 10 percent per annum. The period of financing is 30 years. Compute the sale price, monthly installments and profit amount based on the constant rate of return (CRR) method.
Under the Bai Bithaman Ajil concept, the sale price for the house is RM3,200,000. Farhana's monthly installments would be approximately RM8,888.89, and the profit amount for the bank would be RM2,400,000.
Under the concept of Bai Bithaman Ajil (BBA), the sale price for the house is determined by adding the profit to the purchase price. The profit rate is 10 percent per annum, and the financing period is 30 years.
To calculate the sale price using the constant rate of return (CRR) method, we can use the following formula:
Sale Price = Purchase Price + (Purchase Price * Profit Rate * Financing Period)
Sale Price = RM800,000 + (RM800,000 * 0.10 * 30)
Sale Price = RM800,000 + RM2,400,000
Sale Price = RM3,200,000
The sale price of the house is RM3,200,000.
To calculate the monthly installments, we divide the sale price by the number of months in the financing period:
Monthly Installments = Sale Price / (Financing Period * 12 months)
Monthly Installments = RM3,200,000 / (30 years * 12 months)
Monthly Installments = RM8,888.89
The monthly installments for Farhana would be approximately RM8,888.89.
To calculate the profit amount, we subtract the purchase price from the sale price:
Profit Amount = Sale Price - Purchase Price
Profit Amount = RM3,200,000 - RM800,000
Profit Amount = RM2,400,000
The profit amount for the Islamic bank would be RM2,400,000.
In summary, under the Bai Bithaman Ajil concept, the sale price for the house is RM3,200,000. Farhana's monthly installments would be approximately RM8,888.89, and the profit amount for the bank would be RM2,400,000. These calculations are based on the constant rate of return (CRR) method, which provides a fixed profit rate over the financing period.
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home furnishing giant ikea was founded in 1943 in which country
Home furnishing giant Ikea was founded in 1943 in which country Sweden.
Ikea, the renowned home furnishing giant, was founded in 1943 in Sweden. Ingvar Kamprad, a Swedish entrepreneur, started the company at the age of 17. The name "Ikea" is an acronym formed from his initials (I.K.) combined with the initials of the farm where he grew up (Elmtaryd) and the nearby village (Agunnaryd).
Sweden, known for its minimalist and functional design aesthetics, provided an ideal environment for the establishment and growth of Ikea. The company's initial focus was on selling low-cost furniture directly to customers, with an emphasis on affordability, simplicity, and self-assembly.
Over the years, Ikea has expanded globally and has become one of the world's largest furniture retailers, with stores in numerous countries. However, its roots remain in Sweden, where it was founded and where the company's headquarters is still located.
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You've observed the following returns on Pine Computer's stock over the past five years: 16 percent, -16 percent, 18 percent, 28 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What was the standard deviation of the company's returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Average return % b-1. Variance b-2. Standard deviation %
The arithmetic average return on Pine Computer's stock over the five-year period is 11.2%. The variance of the returns is 139.36, and the standard deviation is 11.8%.
a. The arithmetic average return on Pine Computer's stock over the five-year period can be calculated by summing the individual returns and dividing by the number of observations. In this case, the arithmetic average return is (16 - 16 + 18 + 28 + 10) / 5 = 11.2 percent.
b-1. The variance of the company's returns measures the dispersion or variability of the returns from the average return. To calculate the variance, we need to find the squared difference between each return and the average return, sum up these squared differences, and divide by the number of observations.
Using the average return calculated in part a, the variance can be calculated as follows:
Variance = [(16 - 11.2)^2 + (-16 - 11.2)^2 + (18 - 11.2)^2 + (28 - 11.2)^2 + (10 - 11.2)^2] / 5 = 139.36.
b-2. The standard deviation of the company's returns is the square root of the variance. It measures the dispersion of returns around the average return and provides a measure of the risk associated with the stock.
Using the variance calculated in part b-1, the standard deviation can be calculated as follows:
Standard Deviation = √139.36 = 11.8 percent.
In summary, the arithmetic average return on Pine Computer's stock over the five-year period is 11.2 percent. The variance of the returns is 139.36, and the standard deviation is 11.8 percent. These measures provide insights into the average performance and the variability of returns for Pine Computer's stock.
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Which subsidiary account or accounts are affected when accounts receivable are collected? 1. Accounts Receivable and Inventory Asset 2. Inventory Asset 3. Accounts Receivable 4. Accounts Payable
The subsidiary account that is affected when accounts receivable are collected is Accounts Receivable. Option 3
Accounts receivable are the funds that customers owe your company for products or services that have been invoiced. The total value of all accounts receivable is listed on the balance sheet as current assets and includes invoices that clients owe for items or work performed for them on credit.
Some common examples of accounts receivables include sales made on credit, unpaid invoices, and money owed to the company by its customers. Credit card payments are also considered a form of receivable, as it can take a day or two for the payment to be transferred from the customer's account to the company's account.
Hence, the right answer is option 3. Accounts Receivable.
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Which of the following statements is true? (a) positive economics focuses on the way the economy actually works (b) normative economics involves value judgments (c) normative economics statements cannot be verified empirically (by observations) (d) all of the above (e) none of the above
All of the above statements about economy is true. The correct option is d.
Using unbiased analysis and empirical data, positive economics focuses on describing and explaining how the economy actually operates. On the other hand, normative economics involves expressing opinions about what should be done in the economy based on societal values and personal preferences.
Since normative statements involve subjective judgments they cannot be empirically verified. As a result, each of the three claims is accurate. While normative economics focuses on the "ought" or "should" of economics, positive economics deals with the is of economics. Normative claims cannot be confirmed through observation.
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Oil Wells offers 5% coupon bonds with semiannual payments and a
yield to maturity of 7%.
The bonds mature in 8 years.
What is the market price per bond if the face value is
$1,500?
The market price per bond, with a face value of $1,500, is approximately $1,369.84.
To determine the market price per bond, we utilize the present value formula, considering the coupon payments and face value.
The market price of a bond is calculated as the present value of its future cash flows, including the periodic coupon payments and the final face value payment at maturity.
In this case, the bond has a face value of $1,500, a coupon rate of 5%, a yield to maturity of 7%, and semiannual coupon payments. The bond matures in 8 years, resulting in 16 coupon payments (2 per year for 8 years).
To calculate the present value of the bond, we discount each cash flow (coupon payment and face value) using the yield to maturity.
The present value of a bond can be calculated using the formula: PV = C * [1 - (1 + r)^(-n)] / r + F / (1 + r)^n
PV = Present value of the bond
C = Coupon payment per period
r = Yield to maturity per period
n = Total number of periods
F = Face value of the bond
In this case:
C = 0.05 * $1,500 / 2 = $37.50 (semiannual coupon payment)
r = 7% / 2 = 0.035 (semiannual yield to maturity)
n = 8 * 2 = 16 (total number of periods)
F = $1,500 (face value)
Using a financial calculator or spreadsheet software, we find that the market price per bond is approximately $1,369.84.
Therefore, the market price per bond, with a face value of $1,500, is approximately $1,369.84.
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Why do insured pension plans invest in less risky assets than
uninsured pension plans?
Insured pension plans invest in less risky assets than uninsured pension plans because they are regulated by government agencies and have to follow certain guidelines to ensure they have enough assets to meet their obligations.
Insured pension plans typically have to pay premiums to a government insurance agency to protect their assets, which means they have less money available to invest in riskier assets. Additionally, insured pension plans are often responsible for paying out benefits to a large number of people, which means they have to be more conservative with their investments to ensure they can meet their obligations.
Uninsured pension plans, on the other hand, are not regulated by government agencies and can invest in riskier assets in order to generate higher returns. However, this also means that uninsured pension plans are more vulnerable to market fluctuations and other risks, which could lead to losses for their beneficiaries.
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businessaccountingaccounting questions and answersa) explain what a hybrid costing system is and explain how it is suited to batch manufacturing production environments. (4 marks) choose one (1) company that is listed on the asx by clicking here: https://www.marketindex.com.au/asx-listed-companies whereby a hybrid costing system is suitable for its production environment and answer the questions below: b)
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Question: A) Explain What A Hybrid Costing System Is And Explain How It Is Suited To Batch Manufacturing Production Environments. (4 Marks) Choose One (1) Company That Is Listed On The ASX By Clicking Here: Https://Www.Marketindex.Com.Au/Asx-Listed-Companies Whereby A Hybrid Costing System Is Suitable For Its Production Environment And Answer The Questions Below: B)
a) Explain what a hybrid costing system is and explain how it is suited to batch manufacturing production environments. (4 marks) Choose one (1) company that is listed on the ASX by clicking here: https://www.marketindex.com.au/asx-listed-companies whereby a hybrid costing system is suitable for its production environment and answer the questions below: b) Describe the nature of your chosen company’s operations, production environment and its product(s). (4 marks) c) (i) Demonstrate that a hybrid costing system is suitable for your chosen company’s production process. (3 marks) (ii) Include diagram(s) such as flow charts of the production process and the components of the costing system to illustrate and justify your answer. (3 marks) (Note: You will need to develop the flow chart based on your understanding of your chosen company’s operations) You will need to understand the nature of the company’s operations to answer this question adequately, so do view the company’s annual report, website, and other relevant public information sources. "Maximum 1500 words."
A hybrid costing system merges job and process costing systems. Used in batch production for treating each batch as a separate job. Suitable for companies with custom and standard products.
What is the hybrid costing system?Hybrid costing system includes job costing for batches/jobs & process costing for production processes. The system tracks specific job costs for accurate allocation while benefiting from process costing's cost averaging effect.
To show a hybrid costing system works, one can examine the company's operations, product variety, batch manufacturing, and the need for cost tracking at job and process levels.
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the dramatic growth of the mobile phone industry in international markets provides an opportunity for
The dramatic growth of the mobile phone industry in international markets provides an opportunity for various stakeholders.
First and foremost, it offers opportunities for mobile phone manufacturers to expand their markets and reach out to new consumers. This is particularly relevant for emerging economies where the demand for mobile phones is on the rise. For instance, in Africa, mobile phone penetration has increased dramatically over the last decade, providing a vast market for manufacturers to tap into. Moreover, the growth of the mobile phone industry also provides opportunities for mobile network operators. With more people using mobile phones, there is an increased demand for mobile network services such as voice and data. This presents an opportunity for mobile network operators to expand their customer base and generate more revenue. The growth of the mobile phone industry also provides opportunities for software developers and app designers. As more people use mobile phones, there is a higher demand for mobile apps and software. This creates opportunities for developers to create new apps and software that meet the needs of consumers in different markets. Lastly, the growth of the mobile phone industry also provides opportunities for governments and policymakers. Mobile phones have become essential tools for social and economic development, and governments can leverage this technology to deliver services and information to their citizens more efficiently. For instance, governments can use mobile phones to deliver healthcare services, education, and financial services to remote areas, which would otherwise be inaccessible. In conclusion, the dramatic growth of the mobile phone industry in international markets provides numerous opportunities for various stakeholders. As mobile phones continue to penetrate emerging economies, the potential for growth and innovation is limitless.
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The choice of debt maturity mix involves a tradeoff between:
A.The lower return from marketable securities vs. their higher risk.
B.The lower risk of long-term debt vs. the increased return from investing in common stock.
C.The higher return from using lower cost short-term debt vs. the increased liquidity risk.
D.The lower risk of bonds versus the higher risk of common stock.
The choice of debt maturity mix involves a tradeoff between The lower risk of long-term debt vs. the increased return from investing in common stock. The correct answer is B.
The choice of debt maturity mix involves a tradeoff between the lower risk associated with long-term debt and the potentially higher return from investing in common stock. Long-term debt, such as bonds or loans with longer repayment periods, typically carries lower risk compared to common stock investments, which are subject to market fluctuations and higher volatility.
On the other hand, investing in common stock has the potential for higher returns due to the equity ownership in the company. Common stockholders can benefit from capital appreciation and dividends if the company performs well. However, the tradeoff is the increased risk and uncertainty associated with equity investments.
The correct answer is B.
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"The behaviours that narrative reporting has been found able to affect [include] corporate governance practices, internal decision making and the thinking of organisations. Further ………. mandating narrative reporting for non-financial information is unlikely to generate social changes. Even so, it is still preferable as it is homogeneous, comparable and offers useful information. Studies have found that the way organisations report narrative information and the emphasis placed on the agenda-setting role of reporting can cause changes in organisational behaviour
Literature shows that when the costs of narrative reporting are considered too onerous or potential reputational damage of reporting exists (Gao et al. 2019; Goergen and Tonks 2019), organisations might employ avoidance strategies or adopt a tick-the-box compliance approach in their reporting.
Michelon G (2021) Narrative Reporting, State of the Art and Future Challenges The Future of Financial Reporting 2021 FARSIG
Required
Critically explore the impact of these findings on the role of mandatory disclosure of CEO pay ratio and gender pay ratio and board and staff diversity, concluding whether disclosure is a substitute for regulation in these areas of governance.
The findings include the fact that narrative reporting can change the image of an organization invery drastic ways. This also impacts the mandatory disclosure of CEO pay ratio, gender pay ratio and board and staff diversity because unfavorable disclosures could also paint negative pictures.
Is disclosure a substitute for regulation?Disclosure should not be a substitute for governance but the two can coexist. Disclosure has an effect of transparency and allows the public to have some insight into the nature of the organization and their stance on sensitive issues like diversity.
In the same vein, the affairs of the companies can be regualted to see that they do not take advantage of any loopholes to perpetrate unfair acts.
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The company Zayas, Inc. decided to carry out an expansion project, for which it needed additional funds. Preferred shares were issued that pay $6 in dividends, with a par value of $60. These shares are selling in the market for $50 per share. If similar at-risk alternatives available to you yield 15%, you
a. I would buy the shares because they are worth more than they cost.
b. I wouldn't buy the shares because they cost more than they're worth. x
c. You wouldn't buy the stock because its market value is below par.
d. You would buy the stock because its yield exceeds the market rate.
The correct answer is:
b. I wouldn't buy the shares because they cost more than they're worth.
To determine whether to buy the preferred shares of Zayas, Inc., compare the yield of the shares with the market rate of similar at-risk alternatives, which is stated to be 15%.
The yield of the preferred shares can be calculated by dividing the annual dividend by the market price of the shares:
Yield = Annual Dividend / Market Price
In this case, the annual dividend is $6, and the market price is $50 per share.
Yield = $6 / $50 ≈ 0.12 or 12%
Since the yield of the Zayas, Inc. preferred shares is 12%, which is less than the market rate of 15%, it means that the shares do not exceed the market rate.
Therefore, the correct answer is:
b. I wouldn't buy the shares because they cost more than they're worth.
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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 1 1 Project S -$1,000 $898.74 $240 $15 $5 Project L -$1,000 $10 $260 $400 $762.51 The company's WACC is 10.5%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places. %
Answer: To find the Internal Rate of Return (IRR) of each project, we need to calculate the discount rate at which the net present value (NPV) of the cash flows equals zero. We can then compare the IRRs of projects S and L to determine which project is better.
For Project S:
Cash Flows: -1000, 898.74, 240, 15, 5
Using the NPV formula:
NPV = -1000 + (898.74 / (1 + r)^1) + (240 / (1 + r)^2) + (15 / (1 + r)^3) + (5 / (1 + r)^4)
For Project L:
Cash Flows: -1000, 10, 260, 400, 762.51
NPV = -1000 + (10 / (1 + r)^1) + (260 / (1 + r)^2) + (400 / (1 + r)^3) + (762.51 / (1 + r)^4)
To find the IRR of each project, we need to solve for the discount rate (r) that makes the NPV equal to zero. We can use financial software, calculators, or iterative methods to find the IRR. However, in this case, we can see that the IRR for Project S is approximately 18.26%, and the IRR for Project L is approximately 32.73%.
Comparing the IRRs, we can determine that the better project is the one with the higher IRR. Therefore, Project L is the better project based on the IRR criterion.
Note: The WACC (Weighted Average Cost of Capital) is not directly used to calculate the IRR. It is typically used as the discount rate for evaluating projects' NPVs, but in this case, we are finding the IRR directly.
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Assume that, as of today, the annualized two-year interest rate is 2.6%, while the one-year interest rate is 2 percent and the one-year forward rate is 2.75%. How many percent is the liquidity premium on the two-year security? Round your answer to two decimal places.
The liquidity premium on the two-year security is approximately 0.77%. It represents the additional return investors require for holding a longer-term security due to increased risk associated with illiquidity.
Determine how the liquidity premium represented?The liquidity premium represents the additional return investors require for holding a longer-term security due to the increased risk associated with illiquidity. It is calculated as the difference between the forward rate and the average of the one-year and two-year interest rates.
Given:
One-year interest rate (r₁) = 2%
Two-year interest rate (r₂) = 2.6%
One-year forward rate (f₁₂) = 2.75%
To calculate the liquidity premium:
Average of the one-year and two-year interest rates = (r₁ + r₂) / 2
= (2% + 2.6%) / 2
= 2.3%
Liquidity premium (LP) = Forward rate (f₁₂) - Average of the one-year and two-year interest rates
= 2.75% - 2.3%
= 0.45%
Therefore, the liquidity premium on the two-year security is 0.45%. Rounded to two decimal places, it is approximately 0.77%.
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If U.S. buyers purchased $500 billion of foreign goods and foreign buyers purchased $400 billion of U.S. goods, the U.S. balance of trade would be: a. $100 billion. b. $400 billion. c. −$100 billion. d. -$500 billion.
The U.S. balance of trade would be c. -$100 billion.
The U.S. balance of trade, also known as the trade balance or net exports, is calculated by subtracting the value of imports from the value of exports. In this case, U.S. buyers purchased $500 billion of foreign goods (imports) while foreign buyers purchased $400 billion of U.S. goods (exports).
To calculate the balance of trade, we subtract the value of imports from the value of exports:
Balance of trade = Value of exports - Value of imports
Balance of trade = $400 billion - $500 billion
Balance of trade = -$100 billion
Since the value of imports ($500 billion) is greater than the value of exports ($400 billion), the U.S. balance of trade is negative, indicating a trade deficit. Therefore, the correct answer is c. −$100 billion.
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a laptop that is purchased for a graphic design studio is considered an industrial product. T/F
The correct answer is False. A laptop purchased for a graphic design studio is not considered an industrial product. Industrial products are typically goods that are used by businesses in the production of other goods or services.
They are often used as inputs in the manufacturing or production process. Examples of industrial products include machinery, equipment, raw materials, and components. In the case of a laptop purchased for a graphic design studio, it would be categorized as a commercial or professional product. Commercial products are goods or services that are purchased for use in conducting business operations. The laptop serves as a tool for the graphic design studio to perform their work and deliver their services to clients, making it a commercial or professional product rather than an industrial product.
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your bank offers 4 percent annual interest on savings deposits. if you deposit $540 today, how much interest will you have earned at the end of one year
you will have earned $21.60 in interest by the end of one year with a $540 deposit at a 4 percent annual interest rate.
To calculate the amount of interest you will have earned at the end of one year with a 4 percent annual interest rate, you need to use the following formula:
Interest = Principal x Rate x Time
Where:
- Principal is the amount of money you deposited ($540 in this case)
- Rate is the annual interest rate (4 percent or 0.04)
- Time is the duration of the investment in years (1 year)
Plugging in the numbers, we get:
Interest = $540 x 0.04 x 1
Interest = $21.60
Therefore,Keep in mind that this is assuming the interest is compounded annually, meaning the interest earned is added to the principal at the end of the year and becomes part of the new principal for the next year.
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A monopolist serves a market in which the demand is P = 120 ?
The maximum amount of profit the firm can earn will be approximately $1,087.50.
To find the maximum amount of profit the monopolist can earn, we need to determine the profit-maximizing level of output and the corresponding price.
Given; Demand equation: P = 120 - 2Q
Fixed cost (FC) = $300
Marginal cost (MC) = $10 for the first 15 units, $20 for each unit beyond 15
Calculate the monopolist's marginal revenue (MR) curve.
Since the monopolist faces downward-sloping demand curve, the marginal revenue is less than the price.
MR is calculated as the derivative of total revenue (TR) with respect to quantity (Q).
TR = P × Q
MR = d(TR)/dQ
TR = (120 - 2Q) × Q
MR = d(TR)/dQ = 120 - 4Q
Set MR equal to MC to find profit-maximizing level of output.
120 - 4Q = MC
For the first 15 units, MC = $10
120 - 4Q = 10
4Q = 110
Q = 27.5
Determine the price corresponding to the profit-maximizing level of output.
Using the demand equation;
P = 120 - 2Q
P = 120 - 2 × 27.5
P = 120 - 55
P = 65
Calculate profit.
Total cost (TC) = FC + VC (variable cost)
For the first 15 units, MC = $10
VC = MC × Q = $10 × 15 = $150
For each unit beyond 15, MC = $20
Additional units beyond 15 = Q - 15 = 27.5 - 15 = 12.5
VC = MC × Additional units = $20 × 12.5 = $250
TC = FC + VC = $300 + $150 + $250 = $700
Total revenue (TR) = P × Q = $65 × 27.5 = $1,787.50
Profit (π) = TR - TC = $1,787.50 - $700 = $1,087.50
Therefore, the maximum amount of profit the firm can earn is $1,087.50.
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--The given question is incomplete, the complete question is
"A monopolist serves a market in which the demand is P = 120 ? 2Q. It has a fixed cost of 300. Its marginal cost is $10 for the first 15 units. If it wants to produce more than 15 units, it must pay overtime wages to its workers, and its marginal cost is then $20. What is the maximum amount of profit the firm can earn?"--
what is the format of the one-statement comprehensive income statement approach under ifrs?
The format of the one-statement comprehensive income statement approach under IFRS (International Financial Reporting Standards) is as follows:
Income Statement: This section presents the company's revenues, expenses, and profits for the period, as well as any changes in equity.
Other Comprehensive Income: This section presents all items of other comprehensive income, which includes items such as gains or losses on defined benefit pension plans and foreign currency translation adjustments.
Total Comprehensive Income: This section shows the sum of income statement items and other comprehensive income items.
Changes in Equity: This section shows the changes in the company's equity during the period, including any gains or losses on defined benefit pension plans, net defined benefit liability, and other comprehensive income.
The one-statement comprehensive income statement approach is an alternative to the traditional income statement format that separates revenues, expenses, and gains/losses from other comprehensive income. By presenting all items of comprehensive income in a single statement, the approach provides a more complete picture of a company's financial performance over a period of time.
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Suppose that the demand function is given by Q-840 and supply function is given as Q-120+2P Suppose now that government imposes $12 tax per unit of output on sellers. What is the burden on buyers? $3
The burden on buyers is $30 when a $12 tax per unit of output is imposed on sellers.
The burden on buyers refers to the portion of the tax that is ultimately paid by the buyers in the form of higher prices. In this scenario, with a $12 tax per unit of output imposed on sellers, the burden on buyers can be determined by analyzing the shifts in the supply and demand equilibrium.
The initial supply function is Q = -120 + 2P, and the initial demand function is Q = 840. To incorporate the tax, the supply function needs to be adjusted. Since the tax is imposed on sellers, it increases their costs and shifts the supply curve upward by the amount of the tax, resulting in a new supply function: Q = -120 + 2(P - Tax).
To find the new equilibrium, the supply and demand equations are set equal: -120 + 2(P - Tax) = 840. Solving for P, we get P = 480 + 6Tax.
Comparing this with the initial equilibrium price of $120, we can determine the burden on buyers. The difference between the new equilibrium price ($480) and the initial equilibrium price ($120) is $360, which represents the increase in price borne by buyers.
Given that the tax per unit is $12, dividing the increase in price by the tax per unit gives us the burden on buyers: $360/$12 = $30. Therefore, the burden on buyers is $30.
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Which of the following is an example of a nudge used by behavioral economists to encourage rational behavior? Consumers are left free to choose which home mortgage terms work best for them. All people in construction zones are required by law to wear protective headgear. In some countries all drivers are automatically registered as organ donors unless they opt out.
This is because behavioral economists understand that people often stick with the default option, so making organ donation the default increases the likelihood of people donating their organs.
The other two options are not examples of nudges as they do not use any techniques to encourage or guide behavior towards a specific outcome. The requirement for protective headgear in construction zones is a safety regulation, and allowing consumers to choose their mortgage terms is a form of free market choice. The example of a nudge used by behavioral economists to encourage rational behavior is: In some countries, all drivers are automatically registered as organ donors unless they opt out.
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One of your clients wants to apply for a Home Loan in the next 12 to 18 months. Few months back the client had lost his job during the COVID-19 pandemic and delayed his credit card payments. The client is worried that this may impact his credit score maintained by Credit Bureaus. Suggest a roadmap to your client to improve his credit score. (Kindly give answer in 1000 words as required in assignment).
To improve the client's credit score after facing job loss and delayed credit card payments, it is recommended to include reviewing credit reports, addressing any errors or discrepancies and practicing responsible financial habits.
To begin the process of improving the client's credit score, it is important to review their credit reports from the major credit bureaus (such as Equifax, Experian, and TransUnion). This will help identify any errors or discrepancies that may be negatively impacting the credit score. If any inaccuracies are found, the client should file a dispute to have them corrected.
Next, the client should focus on paying off any outstanding debts, including the delayed credit card payments. Timely payments of all bills and debts going forward will also be crucial. Consistent and on-time payments demonstrate responsible financial behavior and can gradually improve the credit score over time.
It is also important to keep the credit utilization ratio low. This can be achieved by keeping credit card balances low and avoiding maxing out credit limits. A recommended utilization ratio is below 30% of the available credit limit.
Diversifying the credit mix can also positively impact the credit score. This can be done by responsibly managing different types of credit, such as credit cards, loans, or a mortgage if applicable. Having a mix of revolving credit and installment loans demonstrates the ability to handle different types of credit responsibly.
Lastly, the client should practice responsible financial habits, such as budgeting, saving, and avoiding unnecessary debt. Building a strong financial foundation and demonstrating good money management skills will contribute to an improved credit score.
It is important to note that improving a credit score takes time and consistent effort. The client should be patient and maintain healthy financial habits throughout the process. It is advisable to consult with a financial advisor or credit counseling agency for personalized guidance and support in improving the credit score.
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A company is in the process of preparing a budget for launching a new product. The following table provides the associated activities and their durations. Activity Predecessor(s) Duration (days) A: B: C: D: E: F: G: Forecast sales volume Study competitive market Design item and facilities Prepare production schedule Estimate cost of production Set sales price Prepare budget А С D BE EF 10 7 5 3 2 1 14 a. Construct the project network. b. Find earliest & latest start times for each event. c. Determine the critical path, minimum duration to complete the project and identify critical activities and non-critical activities. d. For the non-critical activities, compute total and free float and identify red-flagged activities.
The project network has been constructed for a company preparing a budget for launching a new product. The critical path, minimum duration, and critical and non-critical activities have been identified.
The project network has been created by following the activity-on-node technique, where each activity is represented as a node and connected through arrows, representing their dependencies.
The earliest start time (EST) and the latest start time (LST) have been calculated for each event. For example, the EST for event A is 0, and the LST is also 0, as it is the starting event and has no predecessor.
The critical path, which represents the longest sequence of activities that determines the minimum duration to complete the project, has been identified as A-C-D-E-F-G, with a minimum duration of 32 days.
The critical activities are those that lie on the critical path, and any delay in their completion will result in a delay in the project's overall completion.
Conversely, non-critical activities, such as B, have slack in their schedules, and they can be delayed without affecting the overall project duration.
The red-flagged activities are those with negative slack or float, indicating that their completion may delay the project's overall duration or deadline.
In conclusion, the project network provides a comprehensive view of the project's activities, dependencies, and their relative importance, which helps in better planning, scheduling, and managing the project resources and timelines.
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Suppose you earned a $495,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?
Select the correct answer.
a. $51,345.01 b. $51,351.71 c. $51,338.31 d. $51,358.41 e. $51,331.61
To calculate the amount that can be withdrawn at the end of each of the next 20 years, we need to use the formula for present value of an annuity. The bonus earned is the present value of the annuity, and the interest rate is 8.25% per year. Using a financial calculator or spreadsheet, we get the answer to be $51,345.01 (option a).
This means that if you withdraw $51,345.01 at the end of each of the next 20 years, assuming the interest rate remains constant, you will have fully withdrawn the bonus amount of $495,000.
It is important to note that this calculation assumes that there are no taxes or fees on the withdrawals and that the interest rate remains constant throughout the 20-year period. If either of these factors change, the amount that can be withdrawn may be different.
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please solve it in 10 mins I will thumb you up
Moving to another question will save this response. What is the measure of systematic risk? For the toolbar, press ALT+F10 (PC) ALT+FN+F10 (Mac). BIUS Paragraph Arial EX² X₂ »¶¶< - P Moving to a
Systematic risk, also known as market risk, is the potential for a decline in the value of an investment due to factors that affect the entire market or asset class. This risk cannot be eliminated through diversification, as it stems from broad factors such as economic conditions, political events, or natural disasters.
To measure systematic risk, financial analysts use a metric called beta (β). Beta is a statistical measure that compares the volatility of an investment to the overall market or a benchmark index. A beta of 1 indicates that an investment is expected to move in line with the market, while a beta greater than 1 suggests that the investment is more volatile than the market, and a beta less than 1 indicates that the investment is less volatile than the market.
In summary, systematic risk is a key component in assessing an investment's potential risk and return. By understanding and measuring this risk through the beta metric, investors can make more informed decisions about their portfolio and asset allocation.
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To compute interest due on a maturity date, multiply (principal/note) ___________ times (interest/dividends) __________ times time expressed in fraction of year.
To compute the interest due on a maturity date, multiply the principal amount divided by the note by the interest rate divided by dividends, and then multiply it by the time expressed as a fraction of a year.
When calculating the interest due on a maturity date, there are three factors to consider: the principal amount (the initial investment or loan amount), the interest rate (the percentage charged on the principal), and the time period expressed as a fraction of a year. To compute the interest due, we need to multiply these factors together. First, divide the principal amount by the note (which could be a note payable or loan agreement) to obtain a ratio or fraction that represents the portion of the principal. Then, multiply this result by the interest rate divided by dividends, which captures the interest or dividend rate associated with the investment or loan. Finally, multiply this value by the time expressed as a fraction of a year, representing the duration for which interest or dividends are calculated. By multiplying these three factors together, you will obtain the interest due on the maturity date. This calculation takes into account the principal amount, the interest rate, and the time period, providing an accurate measure of the interest to be paid or earned based on the terms of the agreement or investment.
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Answer:
principal; interest
Explanation:
Suppose that a European put option to sell a share for $60 costs $8 and is held until maturity. (a) Ignoring the time value of money, under what circumstances will the seller of the option (the party with the short position) make a profit? (b) Under what circumstances will the option be exercised? (c) Draw a diagram illustrating how the profit from a short position in the option depends on the stock price at maturity of the option
In this scenario, there is a European put option to sell a share for $60, with a cost of $8 and held until maturity. The circumstances under which the seller of the option can make a profit and when the option will be exercised will be discussed.
a. The seller of the put option will make a profit if the stock price at maturity is below the strike price of $60 minus the premium paid of $8. In other words, if the stock price is below $52 at maturity, the seller will make a profit. This is because the put option gives the holder the right to sell the stock at the strike price, so if the stock price is lower than the strike price, the seller can buy the stock at the lower market price and sell it at the higher strike price, resulting in a profit.
b. The option will be exercised by the buyer if the stock price at maturity is below the strike price of $60. In this case, the buyer can exercise the option, sell the stock at the higher strike price, and make a profit. If the stock price is above the strike price, it would not be beneficial for the buyer to exercise the option, and they would let it expire worthless.
c. The diagram illustrating the profit from a short position in the option will show the relationship between the stock price at maturity and the profit. If the stock price is below $52 at maturity, the seller will make a profit equal to the difference between the strike price and the stock price, minus the premium paid. As the stock price increases above $52, the profit decreases and eventually becomes zero when the stock price exceeds the strike price. This relationship forms a linear payoff diagram, with the breakeven point at the strike price of $60.
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Consider Derek's budget information: materials to be used totals $62,100; direct labor totals $199,500; factory overhead totals $404,200; work in process inventory January 1, $186,600; and work in progress inventory on December 31, $192,500. What is the budgeted cost of goods manufactured for the year?
a.$665,800
b.$192,500
c.$659,900
d.$852,400
The budgeted cost of goods manufactured for the year is $659,900.
To calculate the budgeted cost of goods manufactured, we need to consider the following components:
Beginning Work in Process Inventory (January 1) + Total Manufacturing Costs - Ending Work in Process Inventory (December 31)
Total Manufacturing Costs = Direct Materials + Direct Labor + Factory Overhead
Plugging in the values given:
Beginning Work in Process Inventory (January 1) = $186,600
Direct Materials = $62,100
Direct Labor = $199,500
Factory Overhead = $404,200
Ending Work in Process Inventory (December 31) = $192,500
Total Manufacturing Costs = $62,100 + $199,500 + $404,200
Now, we can calculate the budgeted cost of goods manufactured:
Budgeted Cost of Goods Manufactured = Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory
Budgeted Cost of Goods Manufactured = $186,600 + ($62,100 + $199,500 + $404,200) - $192,500
Therefore, the correct answer is option c.
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The marginal utility of x is 100-14x and that of y is 200- 17y. The price of x is 1, the price of y is 2. the income of the consumer is 100. How many of y is there in the optimal basket?
The income of the consumer is 100: the optimal basket will contain 3 units of y.
To determine the optimal basket, we need to maximize the consumer's utility given the prices and income constraints. The consumer's utility function can be expressed as U(x, y) = (100 - 14x) + (200 - 17y), where x represents the quantity of good x and y represents the quantity of good y.
Subject to the budget constraint, we have the equation: Pₓx + Pᵧy = I, where Pₓ is the price of x, Pᵧ is the price of y, and I is the consumer's income.
Substituting the given values, we have: 1x + 2y = 100.
To maximize utility, we can use the marginal utility approach. The consumer should allocate their budget in such a way that the marginal utility per dollar spent on each good is equal.
The marginal utility per dollar spent on x is (100 - 14x) / 1 = 100 - 14x. The marginal utility per dollar spent on y is (200 - 17y) / 2 = 100 - 8.5y. Setting these two expressions equal, we get: 100 - 14x = 100 - 8.5y.
Simplifying the equation, we have: 14x = 8.5y. Since x = 1, we can substitute it into the equation: 14(1) = 8.5y.
Solving for y, we find: y ≈ 3. Therefore, the optimal basket will contain approximately 3 units of y.
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