Suppose an investor is concerned about a business choice in which there are three prospects; the probability and returns are given below: Probability 0.5 0.3 0.2 The expected value of the uncertain investment is $ dollar.) Return $110 30 - 30 (Round your answer to the nearest
Q: Using the data in the table below, calculate Aggregate Expenditure (AE), Savings (S), and increasing…
A: Aggregate expenditure:It is the value of all the products and services produced in an economy in a…
Q: Price (dollars) 6 & 0 Market Q₁ Q Quartity D Price (dollars) & Firm 9 Quantity 4 q1 This firm will…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Two technology companies, Bapple and Hoogle, are interested in attracting more software engineers to…
A: Dominant strategy is a strategy that always gives best outcome to player irrespective of what other…
Q: Biomet Implants is planning new online patient diagnostics for surgeons while they operate. The new…
A: The given cash flow is presented in the table below:Initial cost300,000Maintenance cost5000Annual…
Q: The labor-force participation rate is computed as (Employed+ Adult Population) x 100. O (Labor Force…
A: The labor force alludes to the piece of the population in a given region or country that is either…
Q: The production possibilities frontier is the Select one: O A. maximum output that can be produced at…
A: Production possibility frontier (PPF) refers to the all possible combination of two goods that a…
Q: As an example of how presidents shape foreign policy, President Bush Il released the in 2002 to…
A: In 2002, during President George W. Bush's tenure, a significant foreign policy document was…
Q: 92 30 33 In this market, economists would call a government-set maximum price of $40 a
A: Demand curve represents quantity demanded corresponding to different price level. Demand curve is…
Q: 33. Refer to Table 13-2. What is the marginal product of the first worker? a. 50 units b. 300 units…
A: The labor demand curve is the value of marginal product curve. Marginal product is the change in…
Q: Q2. Cournot Model (production competition model) Consider a Cournot model. The market demand is…
A: In the cournot model , firms compete on the basis of output. The firms do not learn from their past…
Q: An industry consists of three firms with sales of $285,000,$615,000 , and $310,000 . a.…
A: HHI in economics refers to the Herfindahl-Hirschman Index. It is a commonly used method of market…
Q: Assume that the average product for six workers is fifteen. If the marginal product of the seventh…
A: The marginal product refers to the change in total output due to the employment of an additional…
Q: A fall in the price of a good causes producers to reduce the quantity of the good they are willing…
A: A supply curve is a curve that shows the relationship between the price of a good and the services…
Q: The following table shows hypothetical values for the real GDP and population in the United States…
A: This can be defined as a concept that shows the total production of products and services in an…
Q: Suppose that women's participation rate is60%, men's participation rate is70%, women's unemployment…
A: The unemployment rate, an important economic indicator,which measures the proportion of people in a…
Q: Price D $1 D1 D2 Quantity per period Refer to the above graph to answer this question. What could…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: A bakery works out a demand function for its chocolate chip cookies and finds it to be q=…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40…
A: Fixed costs remain unchanged regardless of production output while variable costs will change when…
Q: Which factors contribute to economic growth? A decrease in the quantity of labor due to emigration.…
A: Economic growth refers to the increase in an economy’s production of goods and services over a…
Q: Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without…
A: It can also be described as the domestic market price, the price at which a specific commodity or…
Q: Firm B's production function is F(K, L) = 10K + 12L. Input prices are r = 60 and w = 40. What is B's…
A: The production function represents the relationship between output and input.
Q: For the following simultaneous move game, we want to find a mixed strategy Nash equilibrium. ROWENA…
A: Given game table:ColinSafeRiskyRowenaSafe4, 4 4, 1Risky1,4 6, 6Mixed strategy Nash equilibrium…
Q: Which of the following trade restrictions can help UAE to protect its local economy? Select one: All…
A: Global trade is similar to a global symphony in which countries trade products and services at their…
Q: QUESTION 15 Which of the following statements is true? O Increasing the RHS of a less than or equal…
A: Increasing the RHS of a less than or equal to constraint will eventually make the shadow price equal…
Q: Question 20 X Table 6.1 QD 24 50 98 114 P 137 107 77 52 17 140 Refer to Table 6.1. As price increase…
A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…
Q: Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp.…
A: "Operating cost per machine is $26,000 per year for the first two years after that, it increases by…
Q: Technological change is said to be exogenous because it A. is encouraged by rivalry among firms. B.…
A: Technological change is defined as the improvement of new or existing technology in the market. It…
Q: Using the supply and demand data for wheat below, what would happen if the government placed a $3…
A: Producer Price: The producer price refers to the price at which producers or suppliers sell their…
Q: Consider a market for solar energy panels as shown in the given graph. Due to a major breakthrough…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers. If…
A: RSI = I - (Pm - C) * QWhere RSI = Relationship Specific InvestmentQ = 10 millionC=$20/unitI=$30…
Q: Matchim's Paving is investing in a new wider paving machine that will cost $131000, which is…
A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…
Q: Musashi Cutter runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards,…
A: Marginal productivity, also known as marginal product, refers to the change in the total output or…
Q: 3. Comparing salaries from different times Consider golfers who led the Professional Golfers'…
A: CPI measures the cost of a market basket or the overall changes in the market basket of goods and…
Q: Calculate the impact on money supply if the Federal Reserve sets the RRR at8%and a bank takes in…
A: The money supply alludes to the aggregate sum of money accessible in an economy at a specific…
Q: The dependent variable in the regression in our cost driver analysis is which of the following?…
A: The dependent variable is the one you are trying to predict or explain. It’s called “dependent”…
Q: In the short run there are 400 firms in a perfectly competitive market, all with the same total cost…
A: Perfect competition: A firm in a competitive market is a price-taker because it has a large number…
Q: The partial data in the table below are for the economy of Arinaka. Planned investment, government…
A: MPC is marginal propensity to consume,which tells how much of additional income is used on…
Q: Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long…
A: The production function is given as The production function exhibits a return to scale and the…
Q: "A decrease in supply will lead to an increase in the price, which decreases demand, thus lowering…
A: Supply refers to the quantity of goods or services that a seller is willing and able to sell at a…
Q: Two relatively inexpensive alternatives are available for reducing potential earthquake damage at a…
A: The benefit-cost ratio is computed by dividing the present value of the projected benefit by the…
Q: 1. Steve's utility is U B0.5+ Co.5, where B refers to burgers per week and C refers to pieces of…
A: Steve's utility function: Here B denotes the consumption of burgers and C denotes the consumption of…
Q: QUESTION 3 You are considering subscribing to ESPN+. You are willing to pay up to $83 per year for a…
A: The difference between the price that a consumer is willing to pay for a good or service and the…
Q: Question 1 Solve for V in the following cash flow using an interest rate of 5%. 0- 10 10 10 10 ↑ ↑…
A: Cash flow refers to the movement of cash into or out of a business, which serves as a measure of its…
Q: In Figure 6.1, the consumer surplus is equal to: OA. $100. OB. $50. O C. $300. OD. $150. 30- P 10…
A: A buyer is considered to have acquired some consumer surplus when they purchase an item or service…
Q: Quantity Total Cost 0 20 2 15. 3 T 5 Which bescribes our situation when quantity = 1? OEconomies of…
A: Economies of scale is when the increase in output decreases the long run average cost.Diseconomies…
Q: 31 A consumer having a car repaired must be told about estimates, labour charges, the right to have…
A: Repair invoice: repair invoice refers to a document provided to a consumer by an automotive repair…
Q: A state tax on portable electronic devices causes one store's weekly sales of high-end smartphone…
A: A buyer's tax, often referred to as a consumption tax, is an additional cost borne by consumers when…
Q: TC & TR (in AED) 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0…
A: A individual's or a business's net income is what remains after expenses, benefits, and taxes are…
Q: The following table shows how much utility Taran gets from watching his favorite teams, measured in…
A: Utility means satisfaction.Marginal utility is the utility derived from the consumption of an…
Q: If a firm wants to maximize her profit in the long-run, how many good will she produce, if the price…
A: A firm continues with its production when it continues to earn higher marginal revenue than the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Suppose an investor is concerned about a business choice in which there are three projects, the probability and returns are given below. Probability Return 0.4 $100 0.4 40 The expected value of the uncertain investment is $ ----------- (round off to the nearest dollar.A man purchased a $22,500, 1-yr term-life insurance policy for $695. Assuming that the probability that he will live for another year is 0.995, find the company's expected gain. (Round your answer to the nearest cent.) $A new company is offering its shares for sale in an initial public offering (IPO) through an auction. There is a 50% probability that the company will be very successful, in which case each share is worth $28. Otherwise, each share is worth $0. You are competing with professional investors such as hedge funds that know if the company will be successful or not. Part 1If you bid $14 per share, what is your expected return?
- Suppose an asset has a return of $416 with probability of 85% and a return of $980 with probability 15%. What is the expected return (i.e. expected value) of the asset? а. b. If a risk averse person were given a choice between the above gamble and $400 guaranteed, which one would they pick?Guy Fieri has purchased a significant plot of land in Northwest Ohio for his newest venture: FlavorTownship. This hub for mind-boggling flavor and entertainment is a strictly for-profit operation. Guy would like to keep Flavor Township open all year-round, but due to Ohio weather the following are the probabilities of when it will be open: |- 30% chance it is open 300 days a year |- 55% chance it is open 325 days a year |- 15% chance it is open 350 days a year Flavor Township will expect to host 14,000 people each day that it is open and expects an average revenue of $45 per visitor. This paradigm-shifting landmark will cost $420,000,000 to start the investment and will require annual costs (food, employees, etc.) of $115,000,000. Every 3 years, Flavor Township will undergo necessary maintenance that will cost $22,000,000. If the expected life of Flavor Township is 15 years and a 16% return is expected, what is the expected NPV of this project?A lottery has a grand prize of $1,000,000, 2 runner-up prizes of $100,000 each, 6 third-place prizes of $10,000 each, and 19 consolation prizes of $1,000 each. If a 4 million tickets are sold for $1 each, and the probability of any ticket winning is the same as that of any other winning, find the expected return on a $1 ticket. (Round your answer to 2 decimal places.
- 12. Over the last decade, robotic-drone a research and development company has researched in new drone technology for home delivery. Their sales department considers that they could sell as many as $90 million per year with a probability of 20%. With a most likely value of $76 million with a probability of 45% and a lowest value of $50 million. a. Determine the expected value of their sales. b. The sales department estimates that they could maintain this sales rhythm for 4 years with a probability of 67% or that this sales rhythm could be maintained for 8 years. Determine the Expected Value for the PW if the company considers a yearly interest rate of 10%Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 % probability of earning a profit of K10,000 and a 30% probability of incurring a loss of K10,000. His utility at the moment is 20 utiles with the current K10,000. With K20, 000 his utility would be 25 utiles and with K0 his utility would be zero.a) What is the expected profit of the project? b) What is the expected marginal utility of the project? Is Mr Phiri likely to invest in the project? Mr Sinkala also has K10,000 from which he derives 20 utiles. However, Mr Phiri derives 15 utiles from the profit of K10,000.c) What is the expected marginal utility for Mr Sinkala? d) How can you describe Mr Phiri and Mr Sinkala in terms of their attitude towards risk?Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 % probability of earning a profit of K10,000 and a 30% probability of incurring a loss of K10,000. His utility at the moment is 20 utiles with the current K10,000. With K20, 000 his utility would be 25 utiles and with K0 his utility would be zero. a) What is the expected profit of the project? b) What is the expected marginal utility of the project? Is Mr Phiri likely to invest in the project? Mr Sinkala also has K10,000 from which he derives 20 utiles. However, Mr Phiri derives 15 utiles from the profit of K10,000. c) What is the expected marginal utility for Mr Sinkala? d) How can you describe Mr Phiri and Mr Sinkala in terms of their attitude towards risk?
- Tasha is planning to invest in a farming project in 2022, but has a reservation given the different forecast (declined (D),the average (A) and takeoff (T)of the economy. She uses the following to guide her decision making. (i) there is 25% chance she will invest if there is a forecast of declined (ii) there is a 75% chance she will invest if there is a forecast of average growth and (iii) there is a 55% chance of investing if there is a forecast that economy will takeoff. Tashanna believes that for 2022 there is a 20% chance of decline and a 40% chance of average growth and a 40% chance the economy will take off. Based on these probabilities what is the chance that Tattiana will invest in the farming project if the stated forecast hold?Hello can any one help with this Economics question: A contractor spends Dollar 3,000 to prepare for a bid on a construction project which, after deducting manufacturing expenses and the cost of bidding, will yield a profit of dollar 25,000 if the bid is won. If the chance of winning the bid is ten per cent, compute his expected profit and state the likely decision on whether to bid or not to bid?At races, your horse, White Rum, has a probability of 1/20 of coming 1st, 1/10 of coming 2nd and a probability of 1⁄4 in coming 3rd. First place pays $5,000 to the winner, second place $4,000 and third place $1,350.Hence, is it worth entering the race if it costs $1050? Your company plans to invest in a particular project. There is a 40% chance you will lose $3,000, a 45% chance you will break even, and a 15% chance you will make $5,500. Based solely on this information, what should you do? On 1st Jan 2006, a business had inventory of $19,000. During the month, sales totalled $32,500 and purchases $24,000. On 31st Jan 2006 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $11,000. The business operates with a standard gross profit margin of 30%. Based on this information, what is the cost of the inventory destroyed in the fire?
