Reference no: EM13695180
1. What model of profit maximization is applicable to the activities of a multinational company? Explain
2. The Transportation Authority in Anytown, USA, raised bus fares from $1 to $1.15 on January 1, 2002. The authority’s statistics show that the number of passengers riding buses decreased from 672,000 in 2001 to 623,000 in 2002.
a. How much did revenue change?
b. What is the arc elasticity for bus travel in Anytown?
c. The answer to b would be correct if all conditions (except price) remained the same between 2001 and 2002. Can you think of any other changes that would have affected the result?
3. There will be some difference in the set of variables used in the regression model of demand for consumer durables (cars, appliances, furniture) and a regression model of the demand for "goods FMCG" (meals, drinks , personal care products)? Explain.
4. Design a production study function for a steel manufacturer company and one for a focus of phone calls. What variables would use and what statistical method would select each function? In general, compare and contrast the production function for product and service.
5. How “perfectly” competitive do you think are the following markets: 1) stock market, 2) bond market, 3) foreign exchange market, 4) world sugar market, and 5) world oil market? Explain
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What quantity is his marginal cost equal to his average cost
: Severin, the herbalist, is famous for his hepatica. His total cost function is c(y) = y^2+10 for y>0 and c(0)=0. (That is, his cost of producing zero units of output is zero.) What is his marginal cost function? What is his average cost function?
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Compare and contrast the internal rate of return
: Compare and contrast the internal rate of return approach to the net present value approach to capital rationing. Which is better? Support your answer with well-reasoned arguments and examples.
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Find the firms marginal cost function
: A competitive firm has the following short-run cost function: c(y) = y^3-8y^2+30y+5. find the firm's marginal cost function. find the firm's average variable cost function. graph the marginal cost function and the average variable cost function
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Similarities and differences between net present value
: Explain the similarities and differences between net present value (NPV), profitability index (PI), and economic value added (EVA) and how can current risk and political risk be minimized when one is making a foreign direct investment?
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Model of profit maximization is applicable to activities
: What model of profit maximization is applicable to the activities of a multinational company? Explain How “perfectly” competitive do you think are the following markets: 1) stock market, 2) bond market, 3) foreign exchange market, 4) world sugar mar..
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Estimate the cost of equity for walmart
: Fama-French Three Factors model to estimate the cost of equity for Walmart
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What is the implied rate of return
: If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
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What is multicollinearity
: What is multicollinearity? What effects does it have on estimation and inference in the multiple regression models? Explain briefly why the consequences of omitting an important variable from a regression are typically more serious than including a r..
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Labor is hired at a constant wage rate
: If a firm hires 312 workers it produces 4,522 computers. If it hires 313 workers it produces 4,786 computers. If computers sell at a constant price of $1 and labor is hired at a constant wage rate of $65 per worker:
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