Answer:
a. c+b≤360....equation 1
b. 2 c+1.5 b≥500.... equation 2, where c and b are the number of cans and bottles of water respectively.
c. The number of water bottles to be sold have to be equal to or more than 142 to cover the cost of renting costumes.
Explanation:
a.
<em>Step 1: Determine maximum number of cans and bottles</em>
As indicated, the number of cans and bottles can not exceed a certain value. This means that the number of cans and bottles can be either equal to or less than that value. The maximum number of cans and bottles can be represented in the following expression;
c+b≤m
where;
c=unknown
b=unknown
m=360
replacing;
c+b≤360....equation 1
b.
<em>Step 2: Determine total amount needed to raise $500</em>
Since $500 dollars is the minimum amount needed, the sales have to be $500 and more. This can be expressed as;
(C×c)+(B×b)≥T
where;
T=total amount needed
C=price per can of lemonade
c=number of cans sold
B=price per bottle of water
b=number of bottles sold
In our case;
T=$500
C=$2
c=unknown
B=$1.50
b=unknown
replacing;
(2×c)+(1.5×b)≥500
2 c+1.5 b≥500.... equation 2
c.
<em>Step 3: Determine least number of bottles of water that must be sold</em>
The least number of bottles of water that must be sold to cover the cost of renting costumes can be solved using equation 2 above;
2 c+1.5 b≥500
where;
c=144
b=unknown
replacing;
(2×144)+1.5 b≥500
288+1.5 b≥500
1.5 b≥500-288
1.5 b≥212
b≥212/1.5=141.33=142
b≥142, meaning the number of water bottles to be sold have to be equal or more than 142 to cover the cost of renting costumes.
Answer:
The amount of annual rental payment = $4,906.205 per annum
Explanation:
Amount of lease payment that Mequon Inc must demand for earning 6% rate of return i.e discounting factor:
=3.465
Amount that will be paid per year:
[(Value of machinery-resifual value at the end of 4 yers expected by Mequon)/discounting factor for 4 years at 6%]
=($47,000-$30,000)/3.465
=$4,906.205(approx.) per annum.
The full question is:
A farm grows soybean and produces chickens. The opportunity cost of producing each of these products increases as more of it is produced.
The farm adopts a new technology which allows it to use fewer resources to produce soybean.
With the new technology, the opportunity cost of producing a chicken _____ because _____ soybeans must be forgone to produce a chicken.
Answer:
increases; more
Explanation:
Opportunity cost is the forgone alternative when a particular line of action is undertaken. For example in the given scenario more production of chicken will lead to loss of soyabean production and vice versa.
So when there is production of more chicken more opportunity cost is incurred because more of soyabean production is forgone in order to produce the chicken.
Economists consider opportunity cost seperately from the actual cost incurred in taking up a particular activity.
Answer:
a. PV = $10,299.02
b. PV = $36,226.63
c. PV = $14,797.46
d. PV = $24,794.88
Explanation:
To solve this question, we use present value formula
PV = C/(1+r)^n
Where PV = Present value of a lump sum
C = Future amount to be discounted
r = Interest rate
n = Number of years
a. PV = C/(1+r)^n
C = $25,500
r = 12%
n = 8
PV = $25,500 /(1+12%)^8
PV = $25,500 /(1+0.12)^8
PV = $25,500 /(1.12)^8
PV = $25,500 /2.475963176
PV = $10,299.02231
PV = $10,299.02
b. PV = C/(1+r)^n
C = $58,000
r = 4%
n = 12
PV = $58,000 /(1+4%)^12
PV = $58,000 /(1+0.04)^12
PV = $58,000 /(1.04)^12
PV = $58,000 /1.601032219
PV = $36,226.62888
PV = $36,226.63
c. PV = C/(1+r)^n
C = $25,000
r = 6%
n = 9
PV = $25,000 /(1+6%)^9
PV = $25,000 /(1+0.06)^9
PV = $25,000 /(1.06)^9
PV = $25,000 /1.689478959
PV = $14,797.46159
PV = $14,797.46
c. PV = C/(1+r)^n
C = $35,000
r = 9%
n = 4
PV = $35,000 /(1+9%)^4
PV = $35,000 /(1+0.09)^4
PV = $35,000 /(1.09)^4
PV = $35,000 /1.41158161
PV = $24,794.88239
PV = $24,794.88
Answer:
The remark by the student is correct since;
B. correct When there is an increase in supply and an increase in demand, the change In both new equilibrium price and equilibrium quantity are unknown
Explanation:
The major factor that affects the supply and demand is the market price of a good or service. The supply of a good or service is the quantity of goods that producers are willing to sell at a particular price, while the demand is the quantity of goods that consumers are willing to but at a particular price. When the price of a good rises, most producers are usually inclined to supply more of the product. On the contrary, when the prices drop, the suppliers tend to sell less of the good. However, there is a state known as the equilibrium point is the price where the quantity of goods supplied is the same as the quantity of goods demanded. This typically means that the suppliers and the consumers are comfortable with the price of that particular good or service. In reality, this scenario is often extremely rare.
In our case, premium bottled water was initially in equilibrium then a sudden rise in demand and a sudden increase in supply also ensued. In this case, it is difficult to know what how much the price and demand will change since we don't have a clue on the quantity of bottled water that will be supplied by the new firms that have entered the market. At the same time, we don't know how much the demand for premium bottled water increased.
