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Q1. BMME5103 2 forgone entrepreneurial income to be $10,000 a year. She used $500,000 in savings that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $1,500,000. The costs for rent, supplies, and employees' salaries were $1,100,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions.
Q2. As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed?
Projects A requires an initial outlay of $1000 and yields $41200 in 4 year's time. Project B requires an outlay of $30 000 and yields $35 000, after 4 years. Which of these projects would you choose to invest in when market rate is 3 percent."
Find out the Nash equilibrium cost for the two diners. How many breakfast club memberships will each diner sell in Nash equilibrium.
Suppose re are 300 of young in some period t. n, how many good are paid to government for tax in this period. In period t, how many good can each old person get and consume.
Your current car has a trade-in value of $12,600. A new car can be financed at a nominal interest rate of 4% compounded monthly. How much will your monthly payments be?
Illustrate what is the present worth of the planned expenditures at an interst rate of 10% per year.
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
What happens to total revenue if the price of sugar rises from $3 to $7 per kilogram.
Using the probability from part a, if 5,000 data sets include 10,000 random numbers, how many of these data sets would be expected to have a sample mean of at least 0.499
what he has learned to estimate the demand for ice cream in his father's parlor during his summer vacation. Using regression analysis.
what percentage of assets do commercial banks hold in loans? what percentage of assets are held in mortgage loans?
Remain in mind about your paper that is going to be read by people without previous knowledge of game theory.
Whether the U.S. Congress press a tariff raising the cost of Japanese compute. Illustrate what are four mutually exclusive states of the world that you should be concerned about
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