Answer:
Decision : It would be better to Replace Old Machine
Explanation:
Check the file attached for proper arrangement and explanation of the solution. Thank you.
Answer:
Q is 98
Explanation:
Marginal (average) cost (including opportunity cost) = $8 + $2 = $10
Profit is maximized when MR = MC = 10.
P = 402 - 2Q
Total revenue (TR) = P x Q = 402Q - 2Q^2
MR = dTR/dQ = 402 - 4Q
Equating with MC,
402 - 4Q = 10
4Q = 392
Q = 98
Answer:
The accumulated present value is $67,518.99.
Explanation:
Investment opportunities that require a series of payments of a fixed amount for a specific number of periods are known as annuities.
The Present Value of this annuity can be calculated as :
Fv = $0
n = 30
r = 4.2 %
Pmt = - $4,000
P/ yr = 1
Pv = ?
Using a financial calculator, the Present Value (PV) of the annuity is $67,518.9948 or $67,518.99.
Answer:
a. Even though I was willing to pay up to $40 for a jersey sweater, I bought a jersey sweater for only $31.
Consumer Surplus;
= 40 - 31
= $9
When the amount that a consumer is willing to pay for something is more than the amount they actually pay, the difference is the Consumer surplus.
b. I sold a used laptop for $137, even though I was willing to go as low as $130 in order to sell it.
Producer Surplus
= 137 - 130
= $7
When the amount that a producer is willing to sell something for is less than the amount they actually sell it for, the difference is the Producer surplus.
c. I was willing to go as low as $130 in order to sell it A local store was having a sale on watches, so I bought a watch for my brother. Neither.
