1a) (8 points) An increase in the price of a product (P)- along with a.docx

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1a) (8 points) An increase in the price of a product (P), along with an increase in the price of an input factor (P I ), is certain to lead to an increase in quantity supplied (Q S ). Indicate whether you believe the statement is True or False , and then briefly explain your answer. 1b) (8 points) An increase in the dollar amount of fixed costs increases marginal cost. Indicate whether you believe the statement is True or False , and then briefly explain your Â Â answer. Solution (a) The statement is false. (b) The statement is again false. Fixed cost is not at all related to marginal cost. Fixed cost is in fact related to average cost. Marginal cost depends on variable cost. For example, a company pays only rent as it total cost. Here monthly rent is fixed. It does not matter whether firm produces 1 output or 100 output. The marginal cost will remain zero. The additional cost of producing extra output is nil in this case. Hence fixed cost has no connection with margianl cost. .

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Running Head: Demand Estimation 1 Demand Estimation 7 Demand Estimation Student Name Institutional Affiliation Instructor’s Name Demand Estimation Compute the elasticity for each independent variable. Note: Write down all of your calculations. When P= 500, C=600, I=5,500, A=10,000, & M=5000, using regression equation, QD= - 5200 – 42(500) + 20(600) + 5.2(5500) + 0.20(10000) + 0.25(5000) = 17,650 Price Elasticity = (P/Q) (∆Q/∆P) With regard to the regression equation, ∆Q/∆P = -42. Price Elasticity is therefore (Ep) = (P/Q) (-42) (500/17650) = -1.19, likewise, Ec = 20(600/17560) = 0.68. EA will be got as = (P/Q) (0.20) (10000/17650) = 0.11 EI = (P/Q) (5.2) (5500/17650) = 1.62 EM = (P/Q) (0.25) (5000/17650) = 0.07 Determine the implications for each of the computed elasticity for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results. Price elasticity is basically -1.19. This is representing the point that a 1 percent increase in the product’s price to lead to 1.19 percent decrease in the demanded quantity. This therefore makes the demand for this specific product to be elastic. Consequently, an increase in the income may dismiss away consumers (Chiappori & Ekeland, 2009). Cross price elasticity is got to be 0.68 meaning that if the competitor’s price of the products increases by 1%, the quantity demanded will basically increase by 0.68% for this particular product. It is therefore important to note that this product is somehow inelastic to the price of the competitor consequently creating no point of concern on the side of the competitor because their prices will not affect the sales (Kreps, 2013). Income elasticity is at 1.62. This indicates that a 1 % rise in the average area income will lead to an increase in the quantity demanded by 1.62%. Based on this, the product is considered to be elastic and the company can as well opt to increase the price if the average income rises. Advertisement elasticity is at 0.11 resulting to a perception that a 1% increase in the advertisement expenditure will increase the demanded quantity by 0.11%. Therefore demand is relatively high with regard to advertisement (Henderson, 2008). Due to this, additional advertisementdoes not automatically mean that an organization can increase the prices of its products since it can as well discourage its consumers. Considering microwave ovens situated on the region, elasticity is got at 0.07. This is a clear indication that if there is an increase of 1% in the quantity of ovens in the region, the quantity demanded will basically increase by 0.07%. With regard to this, demand is considered as inelastic and price strategy can neglect this element. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support f ...

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Assignment 3 Assignment 3 is due after you complete Lessons 9 to 11. It is worth 20% of your final grade. Prepare your responses to these assignment problems in a word processing file; put financial data in a spreadsheet file. As you complete the assignment problems for each lesson, add your responses to these files. Do not submit your answers for grading until you have completed all parts of Assignment 3. Note: In assignments, show all calculations to 4 decimal places. Lesson 9: Assignment Problems 9.1 The Constant-Growth-Rate Discounted Dividend Model, as described equation 9.5 on page 247, says that: P0 = D1 / (k – g) A. rearrange the terms to solve for: i. g; and ii. D1. As an example, to solve for k, we would do the following: 1. Multiply both sides by (k – g) to get: P0 (k – g) = D1 2. Divide both sides by P0 by to get: (k – g) = D1 / P0 3. Add g to both sides: k = D1 / P0 + g (8 marks) 9.2 Notation: Let Pn = Price at time n Dn = Dividend at time n Yn = Earnings in period n r = retention ratio = (Yn– Dn) / Yn = 1 – Dn/ Yn = 1 - dividend payout ratio En = Equity at the end of year n k = discount rate g = dividend growth rate = r x ROE ROE = Yn / En-1 for all n>0. We will further assume that k and ROE are constant, and that r and g are constant after the first dividend is paid. A. Using the Discounted Dividend Model, calculate the price P0 if D1 = 20, k = .15, g = r x ROE = .8 x .15 = .12, and Y1 = 100 per share B. What, then, will P5 be if: D6 = 20, k = .15, and g = r x ROE = .8 x .15 = .12? C. If P5 = your result from part B, and assuming no dividends are paid until D6, what would be P0? P1? P2? D. Again, assuming the facts from part B, what is the relationship between P2 and P1 (i.e., P2/P1)? Explain why this is the result. E. If k = ROE, we can show that the price P0 doesn’t depend on r. To see this, let g = r x ROE, and ROE = Yn / En-1, and since r = (Yn – Dn) / Yn , then D1 = (1 – r) x Y1 and P0 = D1 / (k – g) P0 = [(1 – r) x Y1] / (k – g) P0 = [(1 – r) x Y1] / (k – g), but, since k = ROE = Y1 / E0 P0 = [(1 – r) x Y1] / (ROE – r x ROE) P0 = [(1 – r) x Y1] / (Y1 / E0 – r x Y1 / E0) P0 = [(1 – r) x Y1] / (1 – r) x Y1 / E0), and cancelling (1 – r) P0 = Y1 / (Y1/E0) = Y1 x (E0 / Y1) = E0 So, you see that r is not in the final expression for P0, indicating that r (i.e., retention ration or, equivalently, dividend policy) doesn’t matter if k = ROE. Check that changing r from .8 to .6 does not change your answer in part A of this question by re-calculating your result using r = .6. (10 marks) 9.3 You are considering an investment in the shares of Kirk's Information Inc. The company is still in its growth phase, so it won’t pay dividends for the next few years. Kirk’s accountant has determined that their first year's earnings per share (EPS) is expected to be $20. The company expects a return on equity (ROE) of 25% in each of the next 5 years but in the sixth year they expect ...

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Using the data below, I need answers to the following questions: a) Using the data in Table 1, specify a linear functional form for the demand for Combination 1 meals, and run a regression to estimate the demand for Combo 1meals. b) Using statistical software (Excel), estimate the parameters of the empirical demand function specifiedin part a.Write your estimated industry demand equation. c) Evaluate your regression results by examining signs of parameters, p-values, and the R2. d) Discuss how the estimation of demand might beimproved. e) If the owner plans to charge a price of 4.15 for a Combination 1 meal and spend $18,000 per week on advertising, how many Combination 1 meals do you predict will be sold each week? f) If the owner spends $18,000 per week on advertising, write the equation for the inverse demand function. Then, calculate the demand price for 50,000 Combination meals. Estimation and Analysis of Demand for Fast Food Meals You work for PriceWatermanCoopers as a market analyst. PWC has been hired by the owner of two Burger King restaurants located in a suburban Atlanta market area to study the demand for its basic hamburger meal package–referred to as “Combination 1\" on its menus. The two restaurants face competition in the Atlanta suburb from five other hamburger restaurants (three MacDonald’s and two Wendy’s restaurants) and three other restaurants serving “drive-through” fast food (a Taco Bell, a Kentucky Fried Chicken, and a small family-owned Chinese restaurant). The owner of the two Burger King restaurants provides PWC with the data shown in Table 1. Q is the total number of Combination 1 meals sold at both locations during each week in 1998. P is the average price charged for a Combination 1 meal at the two locations. [Prices are identical at the two Burger King locations.] Every week the Burger King owner advertises special price offers at its two restaurants exclusively in daily newspaper advertisements. A is the dollar amount spent on newspaper ads for each week in 1998. The owner could not provide PWC with data on prices charged by other competing restaurants during 1998. For the one-year time period of the study, household income and population in the suburb did not change enough to warrant inclusion in the demand analysis. TABLE 1: Weekly Sales Data for Combination 1 Meals (1998) week Q P A week Q P A 1 51,345 2.78 4,280 27 78,953 2.27 21,225 2 50,337 2.35 3,875 28 52,875 3.78 7,580 3 86,732 3.22 12,360 29 81,263 3.95 4,175 4 118,117 1.85 19,250 30 67,260 3.52 4,365 5 48,024 2.65 6,450 31 83,323 3.45 12,250 6 97,375 2.95 8,750 32 68,322 3.92 11,850 7 75,751 2.86 9,600 33 71,925 4.05 14,360 8 78,797 3.35 9,600 34 29,372 4.01 9,540 9 59,856 3.45 9,600 35 21,710 3.68 7,250 10 23,696 3.25 6,250 36 37,833 3.62 4,280 11 61,385 3.21 4,780 37 41,154 3.57 13,800 12 63,750 3.02 6,770 38 50,925 3.65 15,300 13 60,996 3.16 6,325 39 57,657 3.89 5,250 14 84,276 2.95 9,655 40 52,036 3.86 7,650 15 54,222 2.65 10,450 41 58,677 3.95 6.

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INTRODUCTION A breakeven analysis is used to determine how much sales volume your business needs to start making a profit. The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan. In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". Total cost = Total revenue = B.E.P.

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1Experimental Chemistry Data Analysis 1. How do you know when to name something as an ionic compound? 2. How do you know when to name something as a molecular compound? 3. How does naming an ionic compound differ from naming a molecular compound? 4. How do you know when a polyatomic ion is present? Why do we include a Roman numeral in the name for compounds containing a transition metal and not for main group metals? 5. Solution 1. Ionic compounds contain ionic bond. When an electropositive metal (preferably groups 1 and 2) forms a compound with an electronegative element, it is an ionic compound. Eg- NaCl 2. Molecular bonds are formed by sharing of electrons. We can identify a compound as molecular compound if it has two or more non metal elements. 3. Naming of molecular compounds includes naming the first Atom as such and the second atom with a suffix of -ide. The number of atoms is also mentioned . Eg- carbon dioxide Ionic compound naming involves naming the first atom as such and attaching -ide with the name of second atom. Number of atoms is not mentioned. Eg- sodium chloride 4. If the ion has more than 1 atom, it is polyionic. We can see that by checking the number of non metal in the compound. If there is more than 1, it is polyatomic ion. Eg- carbonate ion has carbon and oxygen. 5. The Roman numeral represents the coordination number of the transition metal which is not applicable in case of main group metals as they don\'t form ligands. .

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18) Explain why oil and water do not mix. A) Water is not able to ionize in oil. B) The dipole-dipole force between water and oil molecules is too strong. C) Water molecules are polar and oil molecules are not polar D) Oil molecules cannot break the ionic bonds in water E) The viscosity of oil doesn\'t allow mixing of the water molecules. 19) Place the following aqueous solutions of nonvolatile, nonionic compounds in order ot decreasing (highest to lowest) osmotic pressure. I. 0.011 M sucrose II. 0.00095 M galactose III. 0.0060 M glycerin A)I > 111 >11 C) II > III >I 20) Why isn\'t pentanol (CH3CH2CH2CH2CH2OH) very soluble in water? A) Pentanol cannot engage in hydrogen-bonding interactions. B) Pentanol is too viscous so it cannot mix with water. C) Pentanol\'s ion-dipole interactions with water are not strong enough. D) Most of the pentanol molecule is nonpolar, so it exhibits mainly dispersion forces, making it difficult to dissolve in water. E) Most of the pentanol molecule is polar, so it exhibits mainly dipole-dipoles forces making it difficult to dissolve in water. Solution Ans 18 : C) Water molecules are polar and oil molecules are not polar Since water molecule are polar and oil molecules are non polar, they are attracted to each other more than the other oil molecules , in accordance with the general solubility rule that \"like dissolves like\". Moreover oil being less denser than water , floats over the top of water surface . .

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17. Calcium sulfate has a soluble form in water, formed according to: Ca 2+ (aq) + SO4 2- (aq) ?CaSO 4 (aq) K = 7.7Ã—103 CaSO 4 (s) itself, however, is poorly soluble and has the following solubility product: CaSO 4 (s) ?Ca 2+ (aq) + SO4 2- (aq) Ksp = 3Ã—10-34 If we dissolve CaSO 4 (s) in water until CaSO 4 (s)precipitate is left in equilibrium with the solution, (a)Â Â Â Â Â Â Â Â What is the concentration of Ca 2+ (aq)? (b)Â Â Â Â Â Â Â What is the concentration of the soluble complex CaSO 4 (aq)? Solution Ksp = [M] 2 where [M] is concentration of Ca 2+ (aq) and SO4 2- (aq) . [M] = (3x10 -34 ) 0.5 = 1.73x10 -17 K = [CaSO 4 (aq) ] /([Ca 2+ (aq) ]x[SO4 2- (aq)]) 7.7x10 3 x ([M] 2 )= [CaSO 4 (aq) ] 7.7x10 3 x3x10 -34 = [CaSO 4 (aq) ] [CaSO 4 (aq) ] = 23.1 x 10 -31 .

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2. Does evolution violate the second law of thermodynamics? Why or why not? 3. The heat capacity of compound B is two times greater than the heat capacity of compound A. If one mole of each compound (A and B) absorbs 100 Joules of heat, which compound will exhibit the larger temperature rise -A or B? Why? 4. Do you agree or disagree with the following statement? The entropy change of a system is necessarily zero if the process causing the change is performed reversibly. Please state why you agree or disagree. Solution 1. No, it doesn\'t. The Second Law of Thermodynamics is one of the most fundamental laws of nature: evolution really would be in big trouble if it broke it. Put not particularly simply, the Second Law of Thermodynamics states that the entropy (the amount of disorganisation) in a closed system tends to increase with time. Put more simply, this means that matter does not tend to organise itself in a particular location unless there is some external energy source powering it. Evolution can be seen as matter organising itself. Evolution-deniers who cite the Second Law of Thermodynamics as proof against evolution happening on our planet either conveniently forget to mention, or do not realise, that the earth is not a closed system: it has a rather massive external energy source, namely the sun. If we were to consider the entire solar system to be a closed system (which, to all intents and purposes, it is), then the occurrence of evolution on any of the planets would not break the Second Law of Thermodynamics, because, while evolution represents a local decrease in entropy, the burning of fuel within the sun represents a far greater increase in entropy .

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2. Discuss the advantages and disadvantages of using the following commodities as money. A. Bricks B. Corn C. Pearls Solution Type Definition Examples Advantage(s) Disadvantage(s) Commodity Physical assets with a relatively high degree of liquidity due to their uniformity, durability, divisibility, portability, and ease of authentication Clamshells; tobacco; gold Self-equilibrating Inelastic supply; storage, transportation, division, wastage, and authentication costs Representative Claims on commodities in the actual physical possession of the money issuer Tobacco notes; gold deposit notes Easier/cheaper to store, transport, divide, safekeep, and authenticate than the underlying commodity Default and counterfeiting risk; supply elasticity limited by the underlying commodity Credit Claims on the general assets of the money issuer and NOT fully backed by commodity, fiat, or other monies Bank deposits; banknotes Supply elasticity limited only by the reserve ratio Default and counterfeiting risk; some inflation risk Fiat Legal tender enforced by government decree Federal Reserve Notes Extremely elastic supply Inflation risk; counterfeiting risk .

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2. Compare teh payment of cash divididends, stock dividends and purchase of treasury stock from existing shareholders. What are the similiarities and differences? If you were a corporate treasurer, which method would you recomend for returning funds to stock holders? Solution Dividends are payments made by a corporation to its shareholder members. [ It is the portion of corporate profits paid out to stockholders.[1] When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends.[2][3] Many corporations retain a portion of their earnings and pay the remainder as a dividend. stock dividend A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash, those dividends are taxable. When a company issues a stock dividend, rather than cash, there usually are not tax consequences until the shares are sold. Companies often buy back their own stock which lowers the number of shares outstanding. When a company does a stock buyback, the stocks they purchase on the open market become known as treasury stock. These stocks do not pay dividends nor do they have voting rights. Treasury stocks are not included in shares outstanding calculations. When a company buys back its own shares, it can either be advantageous to the shareholders or a detriment depending on the motivation for buying back the shares in the first place. If the company is seeking to boost its financial ratios such as their P/E ratio or earnings per share ratio, then the shareholders .

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1a) (8 points) An increase in the price of a product (P)- along with a.docx

1. 1a) (8 points) An increase in the price of a product (P), along with an increase in the price of an input factor (P I ), is certain to lead to an increase in quantity supplied (Q S ). Indicate whether you believe the statement is True or False , and then briefly explain your answer. 1b) (8 points) An increase in the dollar amount of fixed costs increases marginal cost. Indicate whether you believe the statement is True or False , and then briefly explain your Â Â answer. Solution (a) The statement is false. (b) The statement is again false. Fixed cost is not at all related to marginal cost. Fixed cost is in fact related to average cost. Marginal cost depends on variable cost. For example, a company pays only rent as it total cost. Here monthly rent is fixed. It does not matter whether firm produces 1 output or 100 output. The marginal cost will remain zero. The additional cost of producing extra output is nil in this case. Hence fixed cost has no connection with margianl cost.

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