Answer:
The amount I can afford to spend each year is $133,241.15
Explanation:
The amount I can afford to spend each year can be determined using the formula for present value of annuity due which is given below:
PV(Annuity due)=A*(1-(1+r)^-N)/r
PV is the present value of the investment which is $1.5 million
A is the annual spending which is unknown
r is the rate of return on the investment at 8% per year
N is the duration of investment which is 30 years
The formula can be rewritten as
A=PV/(1-(1+r)^-N)/r
(1-(1+r)^-N)/r=1-(1+8%)^-30/8%
=1-(1+0.08)^-30/0.08
=(1-0.099377333
)/0.08
=11.25778334
11.25778334 is known as annuity factor
A=$1500000/11.25778334
A=$133,241.15
Operations managers can use the mathematical tool of linear programming to plan and make resource allocation decisions. Hence. option (c) will be the suitable response for this question.
<h3>Give a brief account on linear programming.</h3>
An approach to getting the optimal result in a mathematical model whose requirements are expressed by linear connections is linear programming, often known as linear optimization.
Specifically, linear programming is a technique for optimizing a linear objective function while observing the constraints of linear equality and inequality. Its feasible region consists of convex polytopes, a set that is defined as the intersection of a finite number of half spaces, each of which is determined by a linear inequality. A real-valued affine function that is defined on this polyhedron serves as its goal function. If there is a location in the polytope where this function has the least value, a linear programming technique locates it.
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Answer:
<u>Question 1. </u>
Significant barriers to entry.
<u>Question 2.</u>
A formal collusive arrangement among firms.
<u>Explanation:</u>
Question 1.
It is only when there are restrictions to entering a market that a monopolistic firm will continue to earn economic profit in the long run. That is, <em>if it continues to be the only firm (without competitors) offering products or services.</em>
Question 2.
Remember, a cartel is a <em>unanimous agreement</em> (or formal collusive arrangement) by a group of firms to regulate supply and prices of products in it's industry.
they are a food or type of necessity given at no cost or profit
