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3 years ago

A principal of $2700 is invested at 8.75% interest, compounded annually. how much will the investment be worth after 8 years

1 answer:

5 0

The formula for compounding interest is

F= P(1+i)^n

where F is the future worth, P is the principal amount, i is the interest, and n is the number of years. Applying this equation,

F = 2700(1+0.0875)^8
F = $ 5282

I hope I was able to help you with this. Have a good day!

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When firms are faced with making strategic choices to maximize profit, economists typically use a. the theory of monopoly to mod

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Answer:

The correct answer is option c.

Explanation:

Game theory is a tool in economics. It helps to understand the situation in cases where rational players interact and act in a strategic manner. For instance in an oligopoly market where there are few firms, which are interdependent.

These firms or producers are rational players who have to decide output and price level in order to maximize their economic profits.

The theory of monopoly can be applied only in case of monopoly market. The cartel theory is applicable if firms have formed a cartel. Aggressive competition model is not always necessary.

So, the correct answer here will be option c.

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3 years ago

Gina is buying 1,000 shares in an IPO of ABC Corporation. She is buying them through a _____.

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Primary market help this helps

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4 years ago

How the market design explains things today( the events today) by an economist engineer?

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Answer

An economist engineer suggest that the 21st century has seen rise in number of online market and platforms that offer competition to the traditional ways of trade

Explanation

Let's take a look at eBay, Airbnb and Uber which are all marketing platforms where customers can acquire services and goods with just click of the phone button. Goods and services are currently offered for users provided they have access to internet connection with a good gadget. Economist engineers explain the need to understand the manner these markets are designed with more concern on mathematical models and techniques.

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3 years ago

Which of the following is a manufacturing overhead cost? A. labor cost of plant workers that can be traced accurately and easily

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Answer:

The correct answer is letter "B": to a particular product overtime premiums paid.

Explanation:

Overhead costs is an accounting term used for expenses that have to be paid, even if the business does not earn any revenue. The business would not be able to operate without paying its overhead expenses even if the expenses do not directly relate to the product or service being produced.

Examples of overhead costs are rent, utilities, office supplies, repairs and maintenance, insurance, taxes, or the salaries of human resources and accounting personnel. Overtime premiums paid to plant workers fall into this category as well.

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3 years ago

Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution a

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Answer:

It is likely that C. Firm A will buy all of Firm B's pollution permits. Each one will cost between $100 and $200.

Explanation:

So two firms, A and B, each currently emit 100 tons of chemicals into the air, and from now on each one will require a pollution permit for each ton of pollution emitted into the air.
Each firm gets 40 pollution permits, which it can either use or sell to the other firm. That means that if both firms choose to keep their respective 40 permits, they would still have to reduce the pollution by 60 tons (100 minus 40 is 60).
It costs Firm A $200 for each ton of pollution that it eliminates before it is emitted into the air. Because it costs so much to eliminate a ton of pollution, it would make sense for Firm A to get as many pollution permits as possible, as long as they get them for less than $200 each.
It costs Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. Since here it costs less to eliminate a ton of pollution, it would make sense for Firm B to sell as many pollution permits as possible, as long as they sell for higher than $100.

With that in mind, the outcome that makes the most sense would be Option C. Firm A will buy all of Firm B's pollution permits. Each one will cost between $100 and $200. This way both firms spend the least amount of money while at the same time pleasing the government.

To demonstrate it, let's do some actual calculations for each case.

Case A) Both firms will use their own pollution permits.

In this case, each firm will have to independently reduce their pollutants by 60 tons, as noted before. That represents a high cost, as we will now determine:

For Firm A, the cost would be

$60tons*200\frac{dollars}{ton}=12000dollars$

For Firm B, the cost would be

$60tons*100\frac{dollars}{ton}=6000dollars$

Case B) Firm A will buy some of Firm B's pollution permits. Each one will cost less than $100.

Since Firm B could spend $100 to reduce a ton of pollution, it wouldn't sell its pollution permits for less than $100 each: If Firm B sold its pollution permits for less than $100 each, it would have to reduce even more tons of pollutants (spending $100 for each one), and would end up losing money! Let's say it sold 10 pollution permits for $90 each, so it would have to reduce 70 tons of pollutants instead of 60. Its total cost would be:

Cost for Firm B (Case B):

$70tons*100\frac{dollars}{ton}-(10*90dollars)=6100dollars$

Which is higher than the cost calculated for Firm B in Case A, so it's not worth it.

Case D) Firm B will buy all of Firm A's pollution permits. Each one will cost between $100 and $200.

This is a similar case than Case B, in the sense that since it costs Firm A so much to reduce a ton of pollutant ($200 for each one), it wouldn't sell its pollution permits for less than $200 each, or it would end up losing money as well. Let's say Firm A sold all of its 40 pollution permits for $150 each, and so it would have to reduce 100 tons of pollutants instead of 60. Its total cost would be:

Cost for Firm A (Case D):

$100tons*200\frac{dollars}{ton}-(40*150dollars)=14000dollars$

Which is higher than the cost calculated for Firm A in Case A, so it's not worth it.

Finally, Case C) Firm A will buy all of Firm B's pollution permits. Each one will cost between $100 and $200.

As mentioned before, this one makes the most sense because both firms would spend the least amount of money. Let's determine the total costs for each one, knowing that:

Firm A would buy 40 pollutant permits from Firm B, for (let's say) $150 each.
Firm A would still need to reduce 20 tons of pollutants. And
Firm B would have to reduce 100 tons of pollutants, instead of 60.

Cost for Firm A (Case C):

$(20tons*200\frac{dollars}{ton})+(40*150dollars)=10000dollars$

Which is less than the $12000 Cost calculated in Case A.

Cost for Firm B (Case C):

$(100tons*100\frac{dollars}{ton})-(40*150dollars)=4000dollars$

Which is less than the $6000 Cost calculated in Case A.

Since both firms each spend $2000 less in Case C than in case A, it would make sense for them to follow this option.

4 0

3 years ago