Profit will be maximum for the firm where marginal revenue = marginal cost.
Since, the market price is fixed at $8 and therefore each additional unit of camera will be sold at $8.
Hence, marginal revenue = $8.
From the table, it is clear that cameras are manufactured in batches of 100.
Marginal cost is the cost incurred to produce one additional unit of camera. It will be calculated by taking the difference of successive variable costs (or total costs) divided by 100.
To produce 400th unit, marginal cost = (2760 - 1960)/100 = $8
Hence, profit maximising quantity isB. 400 (MR = MC)
A) already approved for a pre determined credit limit
Answer:
a legal consolidation of two entities into one entity
Answer:
Value of the bonds at issuance:
$131,395,438.89
As this ishigher than face value, there is a premium for 31,395,438.89 dollars
Explanation:
Effective market rate:
To determinatethe price of the bonds we should discount the future coupon payment and maturity at the market rate:
Coupon payment:
100,000,000 x 4% = $4,000,000.00
time 15 years x 2 payment per year = 30 payment
market rate: 0.025
Presnet Value of the coupon payment $83,721,170.3710
Maturity 100,000,000.00
time 30.00
rate 0.025
PV 47,674,268.52
Present value of the bonds today:
coupon $83,721,170.3710
maturity <u> $47,674,268.5181 </u>
Total $131,395,438.8891