What is the current quantity and profit or loss

Assignment Help Finance Basics
Reference no: EM13962597

1)  A firm in Perfect Competition has a Total Cost Function: TC = 6Q^2 - 8Q + 12 with a current P=$6

a.) What is the current Quantity and Profit or Loss?

b.) Will firms enter or leave the industry?

c.) What will be the long run Price and Quantity?

 

 

Toyota Camry

Honda Accord

Ford Fusion

Initial cost

$ 22,055

$22,280

$ 22,975

O&M cost

$ 3,716

$ 3,504.40

$ 3,963.38

Salvage value

$11,271

$12,280

$16,106

Benefit

$8,000

$8,000

$8,000

Useful life in Years

5

5

5

 

 

 

 

 

 

 

 

 

 

 

2. The MARR is 10% Find the NPW and compare?

3) Initial capital is $ 5.2 million, Life of Project is  7 years, Interest rate is 15%, Fixed cost  is $ 1 million per year,  Variable cost is  $ 50 per unit (most probable),Demand is 50,000 units annual (most probable) and Price per unit is  $ 100. Find the Total annual cost,  Total annual Revenue and Net present Value for the firm?

4) Using the II - XX framework, shown in the figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. If we start from the point 2, the fiscal policy can move the points only in the horizontal direction and the devaluation of currency can move in the vertical direction.  So that the economy can reach either point 3 is on II curve, that is internal balance or point 4 is on XX curve, that is external balance, but we cannot attain both internal (point 3) and external balances (point 4) at the same time.  From the figure the equilibrium can attain only through the horizontal and vertical movements or internal and external balances. So that through the devaluation of currency along with an increase in fiscal ease, like increasing government expenditures or decreasing taxes will move the economy to both internal and external balances at point 1 in the figure

5) Consider a small open economy in the short run where the government imposes trade tariffs on corn.(a) Given a floating exchange rate sketch a graph of the impact of the tariffs on IS-LM.

b) With a floating exchange rate how does the trade tariffs impact the sale of domestic corn? Other export goods?(c) Given a fixed exchange rate sketch a graph of the impact of the tariffs on IS-LM.(d) With a fixed exchange rate how does the trade tariffs impact the sale of domestic corn? Other export goods?(e) Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output?(f) Under which regime does the money supply increase by more or less, why?

6) Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods:In this case, you can conclude that eliminating pollution is less/more costly to society when the government distributes tradable permits than when it regulates each firm to eliminate a certain amount of pollution.

Reference no: EM13962597

Questions Cloud

Describe movie theatres competitive strategy : Describe movie theatres Competitive Strategy. How do you stay competitive? What can/do you do to be better than the competition? What should/can you change to improve your competitive position?
In your opinion was this morally justifiable action explain : Assume the atomic bombs that were dropped on Japan at the end of World War II were responsible for ending the war. In your opinion, was this a morally justifiable action (even though tens of thousands of civilians were killed)? Explain
What is the electric potential due to this charge : A point charge of -6.8 µC is at the origin. What is the electric potential due to this charge at (-2.0 m, 0)? What is the electric potential to this charge at (2.0 m, -2 m)?
How much daily demand can be satisfied with this system : A company uses a Kanban system in the production facility for the jitterburg car the facility operates 8 hours per day. A certain part requires 150 seconds of processing at machine A and a container of parts average 1,6 hours of waiting time there. M..
What is the current quantity and profit or loss : Initial capital is $ 5.2 million, Life of Project is  7 years, Interest rate is 15%, Fixed cost  is $ 1 million per year,  Variable cost is  $ 50 per unit (most probable),Demand is 50,000 units annual (most probable) and Price per unit is  $ 100. Fin..
Linear programming model for alexis harrington : How much would the return for cattle have to increase in order for Alexis to invest only in cattle? Should all of Alexis's inheritance be invested according to the optimal solution?
What are the typical roles that team members need to assume : Describe the important issues that an organization must consider in developing successful teams. What are the typical roles that team members need to assume?
Find electric field at the center of this triangle : What will be the magnetic field at the center of the same triangle, when charges are moving along its sides with constant velocity v in clockwise direction and are exactly in the middle between two consequent corners?
What would you do if you were the trolley driver : What would you do if you were the trolley driver? Is the driver required, permitted, or forbidden from turning the trolley onto the other track? Why

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What would be the approximate food beverage and non

what would be the approximate food beverage and non food-supplies inventory value of a full service restaurant with an

  What arbitrage strategy was possible

The three-month forward exchange rate was 1.0300($ per franc). What arbitrage strategy was possible? How does your answer change if the exchange rate is 1.0500($ per franc).

  Calculate the monthly mortgage payment made

1.Calculate the monthly mortgage payment made at the beginning of each month on a $100,000 mortgage. The mortgage is for 15 years and the interest rate in 5.5 percent.

  What is the price of the stock today

Upper Gullies Corp. just paid a dividend of $2.20 per share. The dividends are expected to grow at 22 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 14 percent, what is..

  Development of key skills and behavior by individual

Develop a list of 5 key skills or behaviors you will be working to improve. Tell me why you chose these skills. What is your current skill level in these areas?

  Teaching net present value-future value

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:

  Why would a firm ever forgo a positive npv project

Why is internally generated cash flow of such importance to Merck? Can't Merck use the financial markets as a source of funds? Why would a firm ever forgo a positive NPV project?

  What is the equivalent annual cost of the tool

Precision lathe costs $11,000 and will cost $21,000 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 5 years, what is the equivalent annual cost of the tool?

  Select one of the following funding organizations write a

select one of the following funding organizationsmiddot united way of americamiddot the robert wood johnson

  What rate must rental cost increase each year to make the

You are considering purchasing a warehouse. The cost to purchase the warehouse is $500,000. Renting the equivalent space costs $20,000 per year. If the annual interest rate is 6%, at what rate must rental cost increase each year to make the cost of r..

  Mirror ball ranch is considering the purchase of a new

mirror ball ranch is considering the purchase of a new excavator for 200000. the new excavator has a useful life of 6

  What are the intrinsic values of stock d and g

The companiew are equally risky, and their required rate of return is 15 percent. D's constandt growth rate is zero and G's is 8.33 percent. What are the intrinsic values of stock D and G?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd