(a) Find the time path of capital K(t) given the following rates of net investment flow functions (i) I(t) = 12t¹/⁹ (ii) I(t) = 3t¹/4 (iii) I(t) = 7t¹/3 (iv) For each of (i) to K(0) = 10 K(0) = 3 K(0) = 5 (iii), find the amount of capital formation over the time interval [1,3]
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- In early 1999 an investor bought 1000 shares of skandia for K127 per share. During the year dividends were received at K1.15 per share.sellig price per share is K180 a)What is the investor's total return in K? B)Capital gains, dividend yield, and total return in percentage terms?Consider the following production and cost functionsq=〖(10K^(2/5)+5L^(2/5))〗^(5/2)1250=20K+8LWhich implies〖MP〗_K=10〖(10K^(2/5)+5L^(2/5))〗^(3/2) K^(-3/5)〖MP〗_L=5〖(10K^(2/5)+5L^(2/5))〗^(3/2) L^(-3/5)What is the profit maximizing combination of K and L?The unit cost in peso to produce a chemically formulated product is $13 and the fixed cost is $370. The price-demand function in dollars per unit is p=70-2D. Determine the following; a. Determine the optimal demand of this product and confirm that profit occurs at this demand. b. What is the demand that will give maximum revenue of this product and how much is the total revenue? C. Find the demand at which breakeven occurs and the range of profitability.
- A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month.a) Derive how to find the number of units that should be produced annually to maximize profit.b) What is the maximum profit per year?c) What is the annual breakeven point?d)What is the company’s range of profitable output per year?A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month. 1) What is the company’s range of profitable output per year?A rough rule of thumb for the chemical industry is that OMR 1 of annual sales required OMR 2 of fixed capital investment. In a chemical processing plant where this rule applies, the total capital investment is OMR 3200000 and the working capital is 18% of the total capital investment. The annual net total product cost amounts to 1500000 OMR. If the income tax rates on gross earnings total 21%, determine the following: (a) Percent of total capital investment returned annually as gross earning. (b) Percent of total capital investment returned annually as net profit.
- 4) A company produces a chemical at a rate of 1000 tons/year with a planned sale price of 0.8 TL / kg. The fixed cost is 60000 TL/year and direct production is 5.5 x 106 TL/year at full capacity. Determine the direct product cost per unit product (TL /kg). Find the breakeven capacity of the company for this product. Draw breakeven chart according to determined results in (ii). Calculate the new breakeven point if the price of the product decreased to 0.5 TL/kg.(a) How much will the firm produce in order to maximise profits at a price of £8 per unit and What will be its average cost of production at this output? ..................................................... (b) How much (supernormal) profit will it make and How much will the firm produce in order to maximise profits at a price of £5 per unit? . (c) Below what price would the firm shut down in the short run and Below what price would the firm shut down in the long run?Define the term Actual-Dollar Analysis?
- Inventoriable costs versus period costs. Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company) KitchenAid (a manufacturing-sector company) HughesNet (a service-sector company): A. Cost of phones and computers available for sale in Best Buy’s electronics department B. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant C. Depreciation on HughesNet satellite equipment used to provide its services D. Electricity used to provide lighting for Best Buy’s store aisles E. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process F. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaigns G. Perrier mineral water purchased by HughesNet for consumption by its software engineers H. Salaries of HughesNet area sales managers I. Depreciation on vehicles used to transport KitchenAid products to retail stores 1.…Upon graduating from UTM, you are offered the choice between two positions. Both are commission based with varying monthly incomes. • Option 1: $3,000/month 40% of the time, and $5, 000/month 60% of the time. • Option 2: $3,000/month 55% of the time, and $6,000/month 45% of the time. For parts (a) and (b): show your calculations (rounding all to 2 decimal places) to determine the following. Include 1 to 2 sentences which incorporate numerical evidence to explain how you arrived at your conclusion. Part (a): Which of the two options is riskier? Part (b): Given your utility function of U(I) = 12, which option will you choose? 500What is the main assumption needed to proceed with a “difference in differences” research project? Why do the time trends matter?