Answer:
The answer is: C) Invest $1000 in the risky portfolio
Explanation:
If the risk free asset has a rate of return of only 5% and the investor wants to get a RoR of 8%, the only way he can do it is by investing all his funds in the risky portfolio. If he invests any amount on the risk free asset then his total RoR will fall below 8%.
Answer: hello your question is poorly structured attached below is the missing graph and missing part of the question
Assume the government imposes a $1.00 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed.
answer :
a) $2 , 4 billion
b) $2.5
c) $1.5
d) 3 billion
e) $3 billion
Explanation:
a) equilibrium price = $2 per bottle
equilibrium quantity = 4 billion bottles
<u>b) After imposition of excise tax </u>
consumers will pay = $2.5
<u>c) The amount producers keep after the imposition of taxes </u>
= $2.5 - tax
= 2.5 - 1 = $1.5
<u>d) New equilibrium quantity ( after tax is imposed ) </u>
= 3 billion bottles ( from graph attached ) i.e. intersection of S2 and D
e)<u> Amount of tax revenue collected by the government from the imposition of tax </u>
= quantity of bottles sold * $1
= 3 billion * $1 = $3 billion
Answer:
a. What is the MRP? What is the MRC? Should the firm add this delivery vehicle?
marginal revenue product = marginal product of labor x marginal revenue per output unit
MRP = 1,500 packages x $0.10 per package = $150
marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)
The company should add the delivery truck because MRP is higher than MRC.
b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?
MRP = $150 (doesn't change from question a)
MRC = $200 (the cost of renting the delivery truck)
The company should not add the delivery truck because MRP is less than MRC.
c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? Would adding a vehicle under these circumstances increase the firm's profits?
MRP = 750 packages x $0.10 per package = $75
MRC = $100
The company should not add the delivery truck because MRP is less than MRC.
Answer:
Option b: False
Explanation:
FICA is simply known as Federal Insurance Contributions Act. It is the act under which this tax is also deducted from the paycheck.The FICA tax rates and taxable wage bases are exactly the same for employees and employers.
Government uses FICA tax to provide
an income check to people at retirement age,health care, another service and others. It it a body that has its own rules, regulations and default in any of them may lead to penalty.
Answer:
The Net value of the Note is $4836.44
Explanation:
Days between May 12 to May 31st = 19
Days in June=30
Days in July = 31
Days in August = 10
Total Days=19+30+31+10=90
Loan Interest
4800 * 90/360 * 4.5/100
= $54
Total Amount due = Face Value+Loan Interest
=$4800+54
=$4854
Now the days left in maturity are given as
Days between July 20 and August 10 =21 days
Total Number of Days in the year is 360
Rate of Discount is 6.2% so
4854 * 21/360 * 6.2/100
Discount by bank is $17.56
So the net value of the note is given as
Net Value=Amount Due-Discount
=$4854-$17.56
=$4836.44
So the Net value of the Note is $4836.44
