Firms do not add to their stock of capital when Tobin's q ratio is 0 . 9 . If q is less than 1 , then the stock market values installed capital at more than its replacement cost. True or False
Q: Alien Advisor Our economists have redone their calculations. They now estimate that citizens in our…
A: Given,MPC = 0.80 and,GDP needs to be decreased by $850Here,Multiplier = [1/(1-MPC)] = [1/(1-0.80)] =…
Q: The following table provides information about labor supply and the marginal revenue product of…
A: We are given the following table: Let us add the total cost of labor and marginal cost of labor…
Q: Use the interactive points to locate the point of critical mass and equilibrium for a hypothetical…
A: The vicious cycle is a phenomenon that can occur in various contexts, such as business growth,…
Q: Imagine you have some workers and some handheld computers that you can use to take inventory at a…
A: Step 1: Step 2: Step 3: Step 4:
Q: Y OF THE WEST INDIES 8 ved ut of 1 Home Dashboard More ▾ Clear my Choice Bahamas just experienced a…
A: Step 1: Step 2: Step 3: Step 4:
Q: the socially optimal price? place the line segment labled pollution limit In accordance with the…
A: The given graph represents the graph of negative externality. Here the marginal private cost is more…
Q: A surgery center specializes in high-risk cardiovascular surgery. The center needs to forecast its…
A: To analyze the profitability of the surgery center over the next three years, we'll use the provided…
Q: Summarise the most recent research on the effects of emissions and related laws on the economic…
A: Recent research on the effects of emissions and related laws on the economic growth of the BRICS…
Q: Consumer surplus is the difference between what a consumer is willing to pay and what they actually…
A: We must first determine the equilibrium quantity and price by setting the demand equal to the supply…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Detailed explanation:
Q: The advantages of a transnational strategy include everything except Multiple Choice lower costs…
A: The following choice does not constitute a benefit of a multinational strategy: Reduced expenses as…
Q: 8. Do the following events have their initial impact on aggregate demand, long run aggregate supply,…
A:
Q: Only type writing allow....don't use pepar work .....
A: Step 1: Cost refers to the expenditure incurred on all the inputs including implicit as well as…
Q: What is the benefit-cost ratio and the net benefits of a highway investment with the following…
A: Interpretation: The benefits exceed the expenses by a factor of 2.55, as indicated by the BCR of…
Q: The price of a slice of cake is $4, therefore his income is
A: Approach to solving the question: Common cases and scenario Detailed explanation:The common number…
Q: Considering the level of the US minimum wage is should be the minimum wage in the US is Positive;…
A: Positive economics deals with objective analysis of economic phenomena, focusing on describing how…
Q: 10.14 For a young, growing company that has a required ROR of a real 25% per year, what is the…
A: To calculate the inflation-adjusted ROR, use the following formula:Inflation-adjusted ROR = [(1 +…
Q: Topic: macroeconomics, AD-AS Model What Is the Effect on AD? Determine the effect on the short-run…
A: AD or aggregate demand, is the sum of all the expenditure components of the macroeconomy. There are…
Q: Typed please please provide quality answer give all explanations correct answer as well as incorrect…
A: Approach to solving the question: Detailed explanation:Why all the options are correctA. Introducing…
Q: - The following table shows Farmer Parker's revenue, cost, and profit from wheat farming:…
A: Concept: Fixed cost of production is that part or component of the total cost that does not move…
Q: 4. Consider the production function f(L, K) = L + K. Suppose the capital is fixed at K = 1. Compute…
A:
Q: Suppose there are two firms, and they are able to coordinate with each other. What are the expected…
A: To find the expected profits for each firm if they successfully collude and split the market output…
Q: Chapter 20 Homework 1 Suppose the natural level of output is $50 billion of real GDP and that people…
A: To plot the long-run aggregate supply (LRAS) curve on the graph:Locate the natural level of output…
Q: The demand by senior citizens for showings at a local movie house has a constant price elasticity…
A: We must comprehend how price elasticity influences demand in order to establish the best prices for…
Q: According to the two graphs, a decrease in the aggregate price level would cause a shift from: a. A…
A: When aggregate price level goes down, consumers are more likely to spend on products due to the…
Q: Given that u = 10 and σ = 5, fill in the following probability statement if we are trying to find…
A: Step 1 :The empirical rule state that :68% of the data values lie within 1 standard deviation…
Q: Solve all questions compulsory......
A: If firms in the market are producing output but are currently making economic losses, S1 illustrates…
Q: Price per Tonne of Wheat MC 18.00 ATC 17.00 15.75 16.00 15.25 1550 15.00 14.00 13.00 12.00 11.00 500…
A: Ans. ) Given the cost curves of a firm in a perfectly competitive market. A perfectly competitive…
Q: According to Okun’s Law, how much must U.S. real GDP grow in 1 year in order for the U.S.…
A: Detailed explanation:Okun's Law is an empirically observed relationship between unemployment and…
Q: What is a non-technical (i.e. a layman’s) definition of elasticity? Given our working definition of…
A: Non-technical Definition of ElasticityTo put it simply, elasticity is a gauge of how much people…
Q: please help me with this question
A: a. To determine absolute advantage, we compare the labor requirements between the two countries.…
Q: The table below shows employment and population data for the nation of Westland. Working-age…
A: Size of the Labor ForceThe participation rate indicates the percentage of the working-age population…
Q: The following table compares the completion percentage and interception percentage of 5 NFL…
A: Step 1:Given:Completion PercentageInterception Percentage554.5594.2603.5602.9621.4Step…
Q: 14.7 The University Resume Service has just invested $8,000 in a new desktop pub- lishing system.…
A: Calculating Economic Service Life of Desktop Publishing System (Detailed)We can't directly solve for…
Q: A bond with a coupon rate of 11 percent sells at a yield to maturity of 12 percent. If the bond…
A: It is essential to ensure that the student has a thorough understanding of the material. The ability…
Q: The wow expert Hand written solution is not allowed please
A: Let's find the corner points of the feasible region: 1. Intersection of 3x+y=50 and 2x+3y=40:…
Q: Based on the conditions laid out in the Coase Theorem, which of the following would lead to the…
A: The Coase Theorem states that under certain conditions, it does not matter how property rights are…
Q: Assume the economy is operating in a horizontal range of the aggregate supply curve. This fall in…
A: In the scenario where the economy is operating in a horizontal range of the aggregate supply curve,…
Q: A monopolist faces a market demand curve given by Q = 70 – P. The Monopolist’s marginal revenue…
A: Let's break down the solution with examples and explain each step: a. i. To maximize profits, the…
Q: Suppose L= 100 1000R 20Y if R 0.09, Y = 488 Suppose Money supply increases to 213,688, calculate the…
A: Given information: L ( real money demand) = 100 - 1000R + 20Y, R = 0.09, Y = 488. Finding the…
Q: It is ten days until the scheduled vote on the proposed minimum wage hike. The leader of the Senate…
A: Approach to solving the question:I rejected the compromise because I believe that compromising on…
Q: The table below shows employment and population data for the nation of Westland. Working-age…
A: Step 1: Size of the Labor Force CalculationIdentify the working-age population and participation…
Q: Give exact answer to every part step by step and take a like
A: AR (Average Revenue): This line starts high and slopes downward, representing how the average…
Q: 10 6 8 00 7 6 51 4 3 2 1 Price ($) (30,3) (46.4) (72,4) P W (84,3) 0+ 0 5 10 15 20 25 30 35 40 45 50…
A: The tariff revenue the government collects is represented by the shaded area in the following image.…
Q: 21. Consider the figure below. Output in a competitive market will be units and producer surplus…
A: Based on the graph provided and your earlier step-by-step explanation, the correct option is:B. 3;…
Q: Price and costs (dollars per unit) 20 20 16 12 8 10 4 0 5 10 10 MR MC ATC 15 20 D 25 30 Quantity…
A: A single-price monopoly, also known as a pure monopoly, is a market structure in which a single firm…
Q: why is behavioral economic beliefs better than traditional economic
A: Compared to traditional economics, behavioral economics provides a more realistic and nuanced…
Q: Solve all questions...
A: Aggregate Demand (AD)Aggregate Demand represents the total demand for goods and services in the…
Q: If Qd = 30 - 2P and Qs = 5 + 3P, where Qd is the quantity demanded, Qs is quantity supplied, and P…
A: To find the equilibrium quantity, we need to set the quantity demanded (Qd) equal to the quantity…
Q: Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the…
A: A monopolistic competitor firm maximises profit when the marginal revenue equals marginal cost or…
Firms do not add to their stock of capital when Tobin's q ratio is 0 . 9 . If q is less than 1 , then the stock market values installed capital at more than its replacement cost.
True or False
Step by step
Solved in 2 steps
- If the market value of firm A is $1.5 million and the replacement cost of capital is $450,000, find the Tobin's q.d. Should the firm replace capital? Elaborate on your response.If the market value of Firm A is 2.2 million and the replacement cost of capital is 605,500. Find the Tobin's q. Should the firm replace capitalTrue or False? Always justify your answer, it is more important than getting It right If the marginal rate on return on capital increases, then investments become more costly for firms. The firms lower their amount of desired capital and this lead in equilibrium to lower investment.
- A clothing manufacturing firm is deciding whether to invest in a new technology that needs an initial investment of $45,000. This will increase cash flows in the first year by $25,000 and $30,000 in the second year. The firm’s current fixed costs are $9,000 and marginal cost is $15. The firm currently charges $18 per unit. What’s the firm’s contribution margin?Which of the following statements is (are) true about NPV as an investment valuation method: (i) NPV should be used when capital is not rationed. (ii) NPV is only useful if the cash flows are positive. (iii) NPV measures the extra value investors would receive when accepting a project.Ben is a retired budget auditor who is currently looking for a new investment opportunity. He is considering two investments: Calzone Zone, a small restaurant specialising in calzone, and Icetown, a skating and curling rink. The projected cash flows of the two investments are shown below. Ben can only choose one projects, so he asks for your help and advice in reaching a decision on which investment to accept. He tells you he requires a 5% rate of return on his investment. Calzone Icetown Zone Cash flows £000 £000 Initial investment (885) 150 (300) 215 Cash flows year 1 Cash flows year 2 Cash flows year 3 Cash flows year 4 Cash flows year 5 195 215 200 230 265 215 215 (585) Assume the initial investment arises at the start of the first year of the project and all the subsequent cash flows occur at the end of the year. Question A. What are the economic factors reflected in the required rate of return? Discuss the likely effects of the economic shock brought by the COVID-19 pandemic on…
- when deciding upon the optimal amount of capital, a firm will decide to purchase capital if all of the following holds EXCEPT a) the purchase increases profits b) the real interest rate is higher than the marginal product of capital c) the marginal benefit of capital equals or exceeds the marginal cost of capital d) the marginal product of capital equals or exceeds the marginal cost of capitalBased on the following information: The investment cost is paid in full in quarter 0, and the cost of the factory is 100000 while the cost of the research is also 100000. The factory has a lifetime of 20 quarters (5 years) and the value of the factory at the end of quarter 20 is 0 Only green jetpacks should be produced at the factory throughout its lifetime. There is no investment in research to streamline production or material consumption. Suppose the quarterly demand in the market is constant and given at P = 338 - 0.018 * Q, where P is price and Q is the number of jetpacks in demand. Assume P is 248 USD and Q is 5000. There are 5 competitors in the market (including you), and all sell the same number of jetpacks each quarter at the price of 248 each. You produce as much as you sell. The costs associated with the quarterly production at the factory are given at K = 178 * Q + 20000, where 178 * Q is direct labor cost and materials, and 20000 is quarterly maintenance cost when Q is…Consider the following binary linear programming formulation of a capital budgeting problem. Projects x3 and x4 are a. Mutually exclusive b. x3 is contingent on x4 c. x4 is contingent on x3 d. Not related
- Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if TFP declines by 43%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).y = x1% x2 and x 2 is fixed at 81; the cost of input x1 is w 1=5; the cost of input x2 is w 2 = 3; p =10 Which expression is the correct expression of profits? T = X1 2 x 2 4 - x 1 x 2 TT = 10x1½ 81% - 5x1 -3(81) = 30x12 . 5x1 - 243 TT = xq% 814 - 5x1 -3(81) = 3x1½ - 5x1 - 243 п-х181- х1- 81 %3D 3х1 -х1-81At a certain factory, the daily output is approximately 40K¹/3¹/2 units, where K denotes the capital investment measured in units of $1,000 and L denotes the size of the labor force measured in worker-hours. Suppose that the current capital investment is$125,000 and that 900 worker-hours of labor are used each day. Use marginal analysis to estimate the effect that an additional capital investment of $1,000 will have on the daily output if the size of the labor force is not changed.