Answer:
![STC = 20K + 25L = 20*5 + 25*[\frac{Q^2}{25}] = 100 + Q^2](https://tex.z-dn.net/?f=%20STC%20%3D%2020K%20%2B%2025L%20%3D%2020%2A5%20%2B%2025%2A%5B%5Cfrac%7BQ%5E2%7D%7B25%7D%5D%20%3D%20100%20%2B%20Q%5E2%20)
Explanation:
We are given:
K units of capital and L units of labor.
•Each unit of capital cost = 20
• Each unit of labor cost =25
• Level K is fixed at 5 units
We are told production function Q = K√L
Using the production functions and the values given, we can get that Q=5√L.
To find Q, the amount of labor will be given as:
Therefore, the Short run total cost function (STC) will be:
![20K + 25L = 20*5 + 25[\frac{Q^2}{25}] = 100 + Q^2](https://tex.z-dn.net/?f=%2020K%20%2B%2025L%20%3D%2020%2A5%20%2B%2025%5B%5Cfrac%7BQ%5E2%7D%7B25%7D%5D%20%3D%20100%20%2B%20Q%5E2%20)
Answer:
The correct answer is C
Explanation:
Constraint is the term which is defined as something which will controls or limits the person or an individual what the person can do. Their decision depends or grounded on the constraint.
In this case,Oliver wants to buy the new equipment in order to complete the project. The budget is depend or grounded on the grant awarded by the company. So, it is an example of a constraint project.
Answer:
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
- rD, rP and rE are the cost of debt, preferred stock and common equity respectively.
To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.
Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million
Market Value - Preferred stock = 1 * 114.50 = $114.5 million
Market Value - Common equity = 26 * 15 = $390 million
Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Answer:
$17,000
Explanation:
Amount Deposited into checking account = $1,700 cash
Required reserve ratio = 0.10
Money multiplier = 1 ÷ Required reserve ratio
= 1 ÷ 0.10
= 10
Change in money supply = Amount deposited × Money multiplier
= $1,700 × 10
= $17,000
Therefore, the increase in total money supply would be $17,000.
