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morpeh [17]
3 years ago
8

A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her cos

ts (i.e. she is optimizing), she uses either copper or bronze, but never both. If these are her two inputs, what must her isoquants look like?

Business
1 answer:
True [87]3 years ago
6 0

Answer:

The isoquants will be straight parallel lines.

Explanation:

In the given secanrio copper or bronze may be used to produce jewellery. The utility derived from use of either one is the same. They are perfectly interchangeable. Therefore copper and bronze are perfect substitutes.

The isoquant curve shows all combinations of input that can be used to produce units of output.

For goods that have perfect substitution the isoquants are straight lines that are parallel to each other. The marginal rate of technical substitution is 1, and isoquant have slope angle of 45° with each axis.

Find attached an illustration of this. So copper is a perfect substitute for bronze.

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Svetlana won $1,000,000 in a contest, to be paid in twenty $50,000 payments at yearly intervals, the first payment paid at the t
goldfiish [28.3K]

Answer: 31155.5

Explanation:

The following can be deduced from the question:

Money won = $1,000,000

Installments made yearly = $50,000

Interest rate = 5%

The yearly deposits made by Svetalana will be: = 500000-x

The future Value of the yearly deposits made by Svetalana will be:

= (50000-x) × (1/(1.05) + (1/(1.05)^2 .....(1/(1+0.05)^20))

= (500000-x) × 33.066

We should recall that the interest from the question is equated to x. This will be:

33.066 × (50000-x) × 0.05 =x

1.6533(50000 - x) = x

82665 - 1.6533x = x

2.6533x = 82665

x = 82665/2.6533

x = 31155.5

7 0
4 years ago
Abacus Company has an opportunity to invest in a depreciable asset that will yield a net cash inflow of $30,000 per year for fou
adell [148]

Answer:

Present Value of Investment Opportunity = $95,096

Explanation:

Net cash inflow = Cash inflow - cash outflow

Given that net cash inflow = $30,000 per month for 4 years

Rate of return = 10%

Present Value = \frac{1}{(1+0.1)^{1} } X $30,000 + \frac{1}{(1+0.1)^{2} } X $30,000 + \frac{1}{(1+0.1)^{3} } X $30,000 + \frac{1}{(1+0.1)^{4} } X $30,000

= $27,272.72 +$24,793.38 + $22,539.44 + $20,490.40

= $95,096 (rounded off to nearest dollar)

Present Value of Investment Opportunity = $95,096

5 0
3 years ago
Bassett Fruit Farm expects its EBIT to be $377,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.3 p
skelet666 [1.2K]

Answer:

$1,729,098

Explanation:

Given that,

EBIT = $377,000

No debt.

Cost of equity = 13.3 percent

Tax rate = 39 percent

Value of issuing bonds at par = $2.7 million

Coupon rate = 6.5%

Therefore,

Unlevered value of the firm:

= [EBIT × (1 - Tax rate)] ÷ Cost of equity

= [$377,000 × (1 - 0.39)] ÷ 0.133

= $229,970 ÷ 0.133

= $1,729,098

4 0
3 years ago
A manufacturing execution system (MES) provides information on job priorities using dispatching rules. supports managers in the
nordsb [41]

Answer:

has all of these features.

Explanation:

This can be said to be a computerized system that are been used as information connection which in many cases are used in monitoring, and controlling of complex system primary used in manufacturing system and also the flow of data in floors that manufacturing are been mostly done. That it is said that a manufacturing execution system posses all the above listed characteristics ranging from providing info for job priority using relevant rules to adjusting lead time to provide customers needs. They are also seen to compile certain bill of materials, resource management and scheduling, preparing work in rogress reports and tracking production lots.

7 0
3 years ago
Assuming that everything else is equal, select the bond that most likely pays a higher Interest rate:
never [62]

Answer:

1. a. A bond issued by a government that is engaged in a civil war.

2. 1. The Standard & Poor's 500 is an example of a stock index.

Explanation:

A key part of the interest rate on a bond is the risk attached to the issuer of the bond. A government engaged in civil war is definitely riskier than the stable government of Japan because there is a chance that they might not even pay if they are defeated and a new government comes in. Such a government will therefore issue at a higher rate to cater for this risk.

The Standard and Poor's 500 is indeed an example of a stock index and it is used to gauge the performance of 500 large companies on various exchanges in the U.S. A corporation can either increase, decrease or maintain stock price by issuing stock so option 2 is wrong. Option 3 is wrong as well because trading stock on an organized exchange does not bring in any revenue for the issuing firm.

3 0
3 years ago
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