The rental price of capital? The real wage? d. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital?
Will the consumer be buying more of Good Y, more of Good X, or more of both goods? An increase in the price of Good A by 50% (from $5.00 to $7.50) causes the consumer to achieve indifference curve i. The price increase will cause the consumer to purchase less quantities of Good A. An increase in the price of Good A causes the budget line to rotate backward around the original vertical intercept. The indifference curve inside the budget line is possible to improve by moving upward until the point where the indifference curve is tangent to the budget line.
Similarly, the inflation rate is equal to the growth rate of the nominal money supply minus the growth rate of real money demand. 9. Factors that could increase the public’s expected rate of inflation include a rise in money growth or a decline in income growth. With no effect on the real interest rate, the increase in the expected inflation rate would increase the nominal interest rate. Numerical
Their total revenue will be subtracted from their total expense which will be their net income. The net income and revenue will be times by 100 will be the profit margin. The net income plus depreciation will equal their cash flow. D. Suppose the change had halved, rather than doubled, the firm’s depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow?
Carla Blackwell Econ 210- Macroeconomics 4/20/15 Phase 2 IP Alan Witty Part 1 The basic formula for calculating the GDP is: Y = C + I + E + G. In this formula, the letter Y is your GDP. C indicates consumer spending. The letter I would symbolize the investment made by industry. The letter E is the excess of exports over imports, while the letter G indicates government spending. To calculate the GDP of a certain x then one would input numeric values in the place where the letters are in the formula.
EGT1 TASK 1 McConnell, Brue and Flynn define Marginal Revenue as “the change in total revenue that results from the sale of one additional unit of a firm’s product; equal to the change in total revenue divided by the change in the quantity of the product sold.” (McConnell, Brue and Flynn, 2012). When we look at the relationship between total revenue and marginal revenue we can see that it is purely a mathematical relationship. The formula that is used to determine Total Revenue is the following; Total Revenue = Price X Quantity, (TR = P X Q). McConnell, Brue and Flynn also define Marginal Cost they state that it is “the extra cost of producing one more unit of output; equal to the change in total cost divided by the change in output.” (McConnell, Brue and Flynn 2011). The marginal cost and total cost is directly related to each other.
(To ease the calculation, assume no income tax.) Response: a. What is the operating income (EBIT) for both firms? EBIT = (Sales Revenue - Variable Cost - Fixed Cost) = $10,000 x $2.50 = $25,000 = 10,000 x $1 = $10,000 = $12,000 = $25,000 - $10,000 - $12,000 EBIT = $3,000 b. What are the earnings after interest?
(0.5 points) 1#If prices will go up supply increases and supply will decrease if the price goes down 4. What is elasticity? (0.5 points) 1#How much the price of a product affects the demand. 5. What
Price Coefficient of Variation = Std. Deviation / Average Annual Return c) Use your findings in parts (a) and (b) to evaluate and discuss the return and risk associated with each stock. Which stock appears to be preferable? Explain • The average returns from stock X is higher (11.74%) compared to that of stock Y (11.14%). • However, the standard deviation is significantly higher for stock X (8.90%) • The coefficient of variation (which standardizes the deviation in the context of the mean) indicates that the risks associated with earning the returns from stock X are much higher (0.76).
The type of growth which results from compounding is called geometric or exponential growth. (Berk & DeMarzo, 2011, p. 89) Rule 3: Moving Cash flows back in time: The third rule stipulates to move a cash flow back in time, we must discount it. The third rule describes how to move cash flows backward in time. Suppose you would like to compute the value today of $1000 you anticipate to receive in a year. If the current market rate is 10%, you can compute this value by converting units.