Energy efficiency the same thing as economic efficiency

Assignment Help Financial Management

Reference no: EM131062875

1. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car. In your opinion, is energy efficiency the same thing as economic efficiency? Please explain your opinion and state whether you support it or not.

2. Assume that a firm’s long-run average total cost (ATC) is constant. Which of the following functions, where Q is output; L is labor input; K is capital input, is more likely to represent the firm’s production? Please explain your choice.

• Q = f(L,K) = L + K

• Q = f(L,K) = L*K

• Q = f(L,K) = L2 + K2

Reference no: EM131062875

Questions Cloud

What is according to the expectations theory : The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. What is, according to the expectations theory, the expected forward rate in the third year?

About the stockbrokers : Stockbrokers: a. Do not act as middlemen b. Cannot trade stock c. Charge commission for buying and selling d. Are always right in all their stock recommendations e. None of these

Uses var risk management techniques : Gwynedd Bank plc. uses VaR risk management techniques. One of the bank’s traders has a £20 million portfolio of equities. The portfolio’s return is normally distributed with a one-day standard deviation of 0.5%. What is the loss in value that has a 1..

Suppose that all investors expect that interest rates : Suppose that all investors expect that interest rates for the 4 years will be as follows: If you have just purchased a 4-year zero-coupon bond, what would be the expected rate of return on your investment in the first year if the implied forward rate..

Energy efficiency the same thing as economic efficiency : Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. In your opinion, is energy ef..

What would be the cost of capital for expansion plan : Tea&Juices, a foreign producer of soft drinks, is considering expanding its activities to Canada. Fruit Juices has 2.9 million shares outstanding, trading on the TSX Venture exchange at $11.45 per share. The company pays no dividends and has issued b..

Determine the equivalent monthly cost of each alternative : A company needs a new car and has the following options: (1) purchase the car cash or (2) lease the car. They are expecting to use the car for 2 years. If car is purchased for cash: • Cost new, $28,000 • Factory rebate available immediately, $4000 • ..

Produce widgets-economy is strong after-tax profit of firm : Two firms, A and B, both produce widgets. The price of widgets is $1 each. Firm A has total fixed costs of $500,000 and variable costs of 50¢ per widget. Firm B has total fixed costs of $240,000 and variable costs of 75¢ per widget. If the economy is..

New product line and requires an initial outlay : BE3 A company is considering a 5-year project that opens a new product line and requires an initial outlay of $85,000. The assumed selling price is $97 per unit, and the variable cost is $63 per unit. what is the financial break-even point?

User Account

All Pages