Reference no: EM13201975
1. A firm has determined that the cost equation for its Winkle division is
C = 1500+ 60Q + .3Q2. The demand equation is P = 100-.2Q.
What should the firm do in the short and long run?
2.Cheatem Insurance Company is trying to sell a loaded term policy in a new market. Their surveys have developed the following regression analysis.
Q= 175 - .3 PT - .1 A + .2 Y + .2 W.
(17) (.02) (.19) (.07) (.08)
Where:
PT = price of the term policy, price of term is $80, A = Age of sample age = 32, Y = Income of sample, income is 20,000, W = Whole life policy price of whole life is $200. The R2 is .856
Is this analysis reliable? Which are the dependent and the independent variables? Which of the coefficients are significant and which are not? How many insurance policies can this company expect to sell? Is the whole life policy a substitute or a complement product? What does the R2 figure mean?
3. Badyear Rubber has developed the following input costs for their truck and bicycle tires. The same rubber is used for both products. Given the constraints they face, how many units of rubber should be used for truck tires and how many should be used for bicycle tires?
Y= 2 RT-.001 RT2 K = 20 RB - .01 RB2
RT and RB = 1300 PB = 25 PT = 100
4.Dingle Durbin's Dairy Duds has developed the following production function for its new Ditzy Darling Daffy Dessert.
Q = 40L - L2 + 54K - 1.5 K2
The input costs are as follows PL = 10 PK = 15
The price of the dessert is $1.
They have the opportunity to go to the Smoketown Street Festival this Sunday and sell their new delightfully delicate delicious dairy dessert. They estimate that they will be able to sell about 40 desserts per hour for the 10 hours they are there. But there's a problem. Ditzy Dan Durbin, the owner forgot to go to the bank and he only has $260 in cash. The entrance fee is $200 and while the labor can be paid after the festival all the materials will have to be paid up front out of the remaining $60. Do they have enough money to show a profit at the festival?
|
Why congress has increased government expenditures
: As a result what happened to the AD curve is unclear. An increase in government expenditures shifts the AD curve to the right while an increase in taxes shifts it to the left. Depending on the relative shifts, the AD curve could shift to the left,..
|
|
Professional strategic financial management
: Describe the four primary purposes of a professional strategic financial management function in an organization. Further elaborate on how reimbursement, supply and demand, contractual adjustments, patient mix, regulatory legislation etc. may influenc..
|
|
Identify ancient sandstone
: How would you identify ancient sandstone as being wind blown in origin, rather than as a stream or beach deposit
|
|
Determine the effect on the employment-unemployment
: determine the effect on either the aggregate demand curve (is it a rightward or a leftward shift), the aggregate short-term supply curve, and the long-term aggregate supply curve (does the upward sloping portions of the SAS curve shift left or rig..
|
|
Which are the dependent and the independent variables
: Badyear Rubber has developed the following input costs for their truck and bicycle tires. The same rubber is used for both products. Given the constraints they face, how many units of rubber should be used for truck tires and how many should be us..
|
|
How are the beliefs reflected visually in the as-ad model
: What do economists believe is the relationship between the price level (P) and real output (Y) in the short run and in the long run, and how does this answer differ depending on which time frame is being considered How are these beliefs reflected ..
|
|
Compute the new cash balance shown in the check register
: A check register shows the current cash balance to be $1,260.40. A check was written after this cash balance date for $193.84. Compute the new cash balance shown in the check register.
|
|
What is the current gdp growth rate for the us
: What is the current GDP growth rate for the U.S. Examine the trend over the past few years. What trends interest you What stage of the Business Cycle would the U.S. economy be in currently given the trends.
|
|
What price should lamps be sold at to maximize profit
: What price should lamps be sold at to maximize profit?
|