Answer:
PV= $1,311.17
Explanation:
Giving the following information:
Future Value (FV)= $5,000
Number of periods (n)= 25 years
Interest rate (i)= 5.5% compounded annually
T<u>o calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV= FV / (1+i)^n
PV= 5,000 / 1.055^25
PV= $1,311.17
Answer:
a lot is missing in this question, so I looked for a similar one:
Howie buys prefabricated fiberglass hot tub shells from a local supplier and adds the pump and tubing to the shells to create his hot tubs. (This supplier has the capacity to deliver as many hot tub shells as Howie needs.) Howie installs the same type of pump into both hot tubs.
He will have only 200 pumps available during his next production cycle. From a manufacturing standpoint, the main difference between the two models of hot tubs is the amount of tubing and labor required. Each Aqua-Spa requires 9 hours of labor and 12 feet of tubing. Each Hydro-Lux requires 6 hours of labor and 16 feet of tubing. Howie expects to have 1,520 production labor hours and 2,650 feet of tubing available during the next production cycle.
Howie earns a profit of $350 on each Aqua-Spa he sells and $300 on each Hydro-Lux he sells.
you have to maximize the following equation: 350A + 300H
where:
A = number of Aqua-Spa hot tubs sold
H = number of Hydro-Lux hot tubs sold
the constraints are:
A + H ≤ 200
9A + 6H ≤ 1,520
12A + 16H ≤ 2,650
A ≥ 0
B ≥ 0
both A and B are integers
Using solver, the optimal solution is: 117A + 77B, and the maximum profit = $64,050
Answer: True
Explanation: Because the company is the sole supplier of electricity in this market, they have all the market power. Market power is the ability the company has to manipulate the market by influencing prices, the level of supply it provides and thus the demand within that market. Companies within markets such as these are known as "price makers", because they are able to change prices of their goods without losing market share.
Because the public utilities company is the sole provider of electricity within this market, they have no pressure or competition from other suppliers within the market. Therefore they have the market power to freely charge higher prices by limiting the supply of electricity. Or charge lower prices by over supplying electricity to consumers.
Answer:
D. is the analysis of how people (or firms) behave in strategic situations.
Explanation:
Game Theory it one of the greatest concepts of social situations among the competitive individuals or firms. It is mostly about the strategies. It includes the science of strategy, optimal decision making among the competitive individuals or firms or maybe countries. Game Theory is very useful for determining the best solutions or paths for price competition or product releases. The Game Theory has well known pioneers like John Nash, John von Neumann.
Game Theory has:
Focus: the focus is the game that is happening. On the game, there are social interactions and rational players.
Key: one player's payoff is contingent on the strategy implemented by the other player.
Players: the individual or the firm who or what is strategic decision-maker within the context of the game
Strategy: it is the complete plan of action a player will obtain from the set of circumstances that might arise within the game
Payoff: The payout a player receives from arriving at a particular outcome
Equilibrium: It is such an outcome or agreement that the point in a game where both players have made their decisions and an outcome is reached
As we see the game theory in general context is the behavioral analysis of the individuals and firms during the strategic situations.
B.
The bus company has monopoly over the bus service in the town because it has no competitors.
