Answer:
Average total cost= $46
Marginal revenue= $33
Explanation:
In this instance the monopolist's total cost is the revenue from sale of one unit less the economic profits per unit
Economic profit per unit= 2,700/900
Economic profit per unit= $3
Average total cost= (Price per unit) - (Economic profit per unit)
Average total cost= 49 - 3= $46
For this instance marginal revenue is equal to marginal cost.
Marginal revenue= Marginal cost= $39
Answer: 1. Convertible bond
2. Putable bond
3. Purchasing power bond.
Explanation:
The $100,000 investment is a convertible bond. This is a fixed-income debt security which yields interest payments. It should be noted that it can also be converted to equity shares or common stock.
Nazeem should pick a putable bond. This is because the puttable bond has a put option that is embedded ans he can also demand his principal to be paid early.
Nazem also recently bought bonds that have their interest rate tied to the consumer price index (CPI) so that he will be protected if inflation rates increase. Nazem has invested in purchasing power bond .
5% of 2265$ is 113,25$
Because 5% is 5/100 so 5 x 2265$ = 11325$
11325$ : 100 = 113,25$
Second year cost is the first year’s plus 5% so
2265$ + 113,25$ = 2378,25$ (second year cost)
