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The total profit of a firm is given by
Profit = Total Revenue - Total Cost
Suppose that Total Revenue = 120Q and Total Cost = 20 + 50Q where Q, the quantity sold, is a (approximately) normal random variable with expected value 30 and variance 5. That is Qis N(30,5)
What is the expected value of total profit?
What is the variance of total profit?
What is the standard deviation of total profit?
Opportunity wage refers to the
The company ises MACRS depreciation and its marginal tax rate is life of 5 years). The 10 cars were sold at the ending a MARR of 10% and using NPW, determine if this was a good investment on an after-tax basis.
Offer pros and cons regarding this form of corporate structure. If possible, give examples of successful and not-too-successful conglomerates.
Why would a firm, then want to continue to produce pass the optimal point?
Explain why the financial system is one of the most highly regulated sectors of the economy.
Critically compare and contrast the policy approaches of TSCA and FIFRA. In your view, which of these is more effective in preventing pollution? Explain.
The third through sixth payments are $1000 greater than the first two. Determine the size of the first (end of period 1) payment.
Which of the following pricing policies compensate customers if the firm fails to provide the best price in the market?
You receive payments at the end of each Quarter starting at the end of Quarter 1 and lasting 5 years (so the last payment you receive is at the end of Quarter 20). These payments are an equal series of payments of $500 for all 20 payment periods. The..
Illustrate why might Fourth of July fireworks be considered a public good. who should pay for them. what about airport security.
Explain why it is not possible for one agent to have a comparative advantage in all goods, a worked example with calculated values would be useful.
Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1500 in revenue. what will the firm’s economic profit or loss ..
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