Answer:
Part a: The value of Y_A and Y_B are
and
respectively.
Part b: Y_A and Y_B are given as
and
respectively for maximization of Y_B
Part c: The condition for the Pareto efficient allocation is Y_A=Y_B
As the value of Y_A and Y_B are not equal in part 2 thus the condition is not Pareto efficient
Explanation:
Part a
For the value of the utility function is given as
![\bar{u}_A=xY_A\\Y_A=\dfrac{\bar{u}_A}{x}](https://tex.z-dn.net/?f=%5Cbar%7Bu%7D_A%3DxY_A%5C%5CY_A%3D%5Cdfrac%7B%5Cbar%7Bu%7D_A%7D%7Bx%7D)
Also the YB is given as
![Y_A+Y_B=100-x\\Y_B=100-x-Y_A\\Y_B=100-x-\dfrac{\bar{u}_A}{x}](https://tex.z-dn.net/?f=Y_A%2BY_B%3D100-x%5C%5CY_B%3D100-x-Y_A%5C%5CY_B%3D100-x-%5Cdfrac%7B%5Cbar%7Bu%7D_A%7D%7Bx%7D)
So the value of Y_A and Y_B are
and
respectively.
Part b:
Now
![\bar{u}_B=xY_B\\\bar{u}_B=x(100-x-\dfrac{\bar{u}_A}{x})\\\bar{u}_B=100x-x^2-\bar{u}_A](https://tex.z-dn.net/?f=%5Cbar%7Bu%7D_B%3DxY_B%5C%5C%5Cbar%7Bu%7D_B%3Dx%28100-x-%5Cdfrac%7B%5Cbar%7Bu%7D_A%7D%7Bx%7D%29%5C%5C%5Cbar%7Bu%7D_B%3D100x-x%5E2-%5Cbar%7Bu%7D_A)
For the maximization
![\dfrac{\partial \bar{u}_B}{\partial x}=0\\\dfrac{\partial (100x-x^2-\bar{u}_A)}{\partial x}=0\\100-2x=0\\x=100/2\\x=50](https://tex.z-dn.net/?f=%5Cdfrac%7B%5Cpartial%20%5Cbar%7Bu%7D_B%7D%7B%5Cpartial%20x%7D%3D0%5C%5C%5Cdfrac%7B%5Cpartial%20%28100x-x%5E2-%5Cbar%7Bu%7D_A%29%7D%7B%5Cpartial%20x%7D%3D0%5C%5C100-2x%3D0%5C%5Cx%3D100%2F2%5C%5Cx%3D50)
From question 1 Y_A and Y_B are given as
and
respectively for maximization of Y_B
Part c:
At the Pareto efficient allocation
![\dfrac{Mu_X}{Mu_{Y_A}}=\dfrac{Mu_X}{Mu_{Y_B}}](https://tex.z-dn.net/?f=%5Cdfrac%7BMu_X%7D%7BMu_%7BY_A%7D%7D%3D%5Cdfrac%7BMu_X%7D%7BMu_%7BY_B%7D%7D)
This is simplified to
![\dfrac{Y_A}{x}=\dfrac{Y_B}{x}\\Y_A=Y_B](https://tex.z-dn.net/?f=%5Cdfrac%7BY_A%7D%7Bx%7D%3D%5Cdfrac%7BY_B%7D%7Bx%7D%5C%5CY_A%3DY_B)
The condition for the Pareto efficient allocation is YA=YB
As the value of YA and YB are not equal in part 2 thus the condition is not Pareto efficient
Answer:
a. production work on an assembly line that makes a product
Explanation:
A support department refers to a section of an organization that comprises of employees who are saddled with the responsibility of providing timely and professional assistance to other core departments such as the production department.
This ultimately implies that, the support department provides assistance such as maintenance work done to keep production machines running smoothly, safety and security services provided to keep the production facility safe and janitorial services provided for the production facility.
Hence, any production work on an assembly line that makes a product is not a type of work done in a support department because all production work is solely being performed by the production department.
Answer:
a. Cost of debt = Interest * (1 - Tax rate)
= 10%*(1 - 0.30)
= 7%
Cost of preferred stock = Dividend/ Issue price
= 5/48
= 10.42%
Cost of common stock (Cost of retained earnings) = (D1/P0) + g
= (4/33) + 0.07
= 0.12 + 0.07
= 0.19
= 19%
b. Fund Cost Weight Cost * Weight
Debt 7% 0.15 1.05%
Preferred stock 10.42% 0.10 1.042%
Retained earnings 19% 0.75 <u>14.25%</u>
WACC <u>16.342%</u>
Answer: $4,262.50
Explanation:
The total expected cost would be the total expected values of the insurance given the probability that Jim might die.
= ∑expected value at 60,61, 62, 63, 64
= (0.01054 * 50,000) + (0.01447 * 50,000) + (0.01645 * 50,000) + (0.02068 * 50,000) + (0.02311 * 50,000)
= $4,262.50
Answer: quality cost report
Explanation:
I just checked it and got it right.