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3 years ago

The production possibilities curve:

Business

1 answer:

jekas [21]3 years ago

7 0

Answer:

The correct answer is letter "B": is a frontier between all combinations of two goods that can be produced and those combinations that cannot be produced.

Explanation:

A variety of answers to the question: "What is our optimum production capacity?" solves the Production Possibility Frontier (PPF). Increased output requires job creation and the best efficient use of resources. This maximizes the labor force available and reduces the services that are not used.

Plotted in a graph, PPF reflects the possible combinations an organization has and how to optimize output as well as what combinations are not to be produced.

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Today you purchase a $600 face-value, 8% coupon bond for $600. This bond matures over 10 years. What is the value of the cash fl

Nadya [2.5K]

Answer:

the value of the cash flow in year 5 is -$48

Explanation:

Cash flow in year 5 include a capital repayment and interest expense.This can be determined by constructing an amortization schedule from the data given.

The first step in constructing the amortization schedule is to find the Yield to Maturity.

Pv = -$600

Pmt = $600 × 8% = $48

P/yr = 1

N = 10

Fv = $600

YTM = ?

Using a Financial Calculator the Yield to Maturity is 8%.

then to determine the cash flow for year 5, we need the coupon amount (interest) and the amount of capital repayment.

Coupon $48

Capital $0

Total $48

Therefore the cash flow in year 5 is -$48.

8 0

4 years ago

A firm purchased 50 units of materials with a unit price of $1.30 on June 1. On June 15, the firm purchased 50 units with a unit

dsp73

Answer: $83

Explanation:

Given that,

On 1 June,

Materials purchased = 50 units

Unit price of material = $1.30

On June 15,

Materials purchased = 50 units

Unit price of material = $1.20

Total cost of 65 units:

= (Material purchased on 1 June × Unit price of material) + [(65 units - 50 units) × $1.20]

= (50 units × $1.30) + (15 units × $1.20)

= $65 + $18

= $83

8 0

3 years ago

You are planning to save for retirement over the next 25 years. To do this, you will invest $760 a month in a stock account and

Kisachek [45]

Answer:

The amount that you can withdraw each month from your account assuming a 20-year withdrawal period is:

= $8,860.36.

Explanation:

a) The future value of $760 invested monthly at 9.6% per annum for 25 years is:

= $949,787.51

b) The future value of $360 invested monthly at 5.6% per annum for 25 years is:

= $235,764.89

c) Total future value of savings = $1,185,552.40 ($949,787.51 + $235,764.89)

d) The amount that can be withdrawn monthly = $8,860.36

See calculations below:

N (# of periods) 300

I/Y (Interest per year) 9.6

PV (Present Value) 0

PMT (Periodic Payment) 760

Results

FV = $949,787.51

Sum of all periodic payments $228,000.00

Total Interest $721,787.51

N (# of periods) 300

I/Y (Interest per year) 5.6

PV (Present Value) 0

PMT (Periodic Payment) 360

Results

FV = $235,764.89

Sum of all periodic payments $108,000.00

Total Interest $127,764.89

N (# of periods) 240

I/Y (Interest per year) 6.6

PV (Present Value) 1185552.40

FV (Future Value) 0

Results

PMT = $8,860.36

Sum of all periodic payments $2,126,487.18

Total Interest $940,934.78

8 0

3 years ago

Suppose Juan has three job offers. He can earn $50,000 in Atlanta, GA; $70,000 in Boston, MA; or $100,000 in San Francisco, CA.

Pavlova-9 [17]

Answer:

To maximize the purchasing power of his income, Juand should accept the offert of Atlanta, GA.

Explanation:

To answer this question you need the comparative costs of living in each of the trhee cities.

In a similar question, you can find the cost of iiving indexes for Atlanta, Boston, and San Francisco. Here is the table:

Cost of living index

City (100 = U.S. City average)

Atlanta, GA 98

Boston, MA 160

San Francisco, CA 245

Thus, to determine which offer Juan should accept to maximize the purchasing power of his income, divide each income by the cost of living index.

Atlanta, GA:

$50,000/98 = $510.20

Boston, MA

$70,000/160 = $437.50

San Francisco, CA

$100,000/245 = $408.16

Rank the adjusted earnings in decreasing order:

$510.20 > $437.50 > $407.16

Hence, in spite of the nominal earnings in Atlanta are the lowest, the higher cost of living indexes of the other cities, make that the offer from Atlanta the best one.

5 0

4 years ago

Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a pr

Pavel [41]

Answer:

$25,000 by charging consumers with more elastic demand only $5 and keeping the price for consumers with less elastic demand at $10

Explanation:

Price discrimination refers to the differentiation in the price of the product for every consumer that means the company charged different prices from the different customers

Also, in this it charges from the consumers having more elastic demand at less price. Here 2,000 units are purchased at $10 and the 1,000 units are purchased at $5 so the total quantity demanded is 3,000

The 25,000 units come from

= 2,000 ($10) + 1,000 ($5)

= 20,000 + 5,000

= 25,000

7 0

3 years ago