Answer:
See below and the picture attached.
Explanation:
For a)
Find the attached image. The initial equilibrium is at EQD1 and Price = 5, the quantity demanded at this level is 100 cigarettes.
For b)
When the price rises to $6, the supply curve for cigarettes shift outwards to supply 2 while the inelastic demand stays the same. This forms and equilibrium of Price 2 and EQD1, qty demanded is still at 100 packs. It would stay the same as there is no demand loss pressure from inelastic demand.
For c)
When the demand falls to 80 packs but remains inelastic, there is a horizontal demand curve shift to the left, from D1 to D2. This forms a new equilibrium with Price = p3 that is less than the equilibrium price of $5. The new quantity demanded and supplied will form a new equilibrium for D2 = 80 packs but price less than the initial P1.
Hope that helps.
Answer:
1. 20 units
2. $600
Explanation:
1. 
MC = 4q
Price, P = $80
For maximizing profits,
Marginal cost = Price of the commodity
4q = 80
q = 20 units
= 200 + 800
= 1,000
2. Profit = Total revenue - Total cost
= (Price × Quantity) - TC
= (80 × 20) - $1,000
= $1,600 - $1,000
= $600
3. We know that the firm in the short run will be produce at a point where total revenue is greater than the total variable cost
Average variable cost = variable cost ÷ quantity
= 2Q
MC = 4Q
Here, MC is greater than AVC at any given point.
so in the short run firm will producing short run positive profit.
Answer:
All partners are limited from personal liability in certain situations.
Explanation:
Limited partnerships and limited liability partnerships offer some of their owners limited personal liability for business debts. One partner is considered a general partner. The general partner makes decisions and has increased liability.
Answer:
The requirement is to calculate the present value of each option:
$ 11.26 million
$11.5 million
$ 12.52 million
Explanation:
The present value formula in excel is very useful in this case:
=-pv(rate,nper,pmt,fv)
rate is the 14% interest rate to be earned per year
nper is duration of the payment
pmt is the amount of payment expected per year
fv is the is the future worth of the payment which is unknown
Option 1:
=-pv(14%,20,1.7,0)=$ 11.26 million
Option 2:
The amount receivable today is the present value i.e $11.5 million
option 3:
=-pv(14%,20,1.4,0)=$9.27 million
total =amount received today+$ 9.27 million=$3.25 million+$ 9.27 millon=$ 12.52 million
Your answer is 2730!!!!!!
