Homework Help for Economics

how to analysis production possibilities frontier and oopotunities cost?

How do opportunity cost and production possibilities relate to each other? Use examples from the problems below

Example Suppose there is an improvement in medical technology that enables more healthcare to be provided with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education?

Using an example of a decision that you might face in a normal day, describe carefully how you would use marginal cost and marginal benefit to help you decide. Don't forget to describe the marginal cost and the marginal benefit of your decision. When a firm chooses its profit maximizing output level, it also thinks at the margin. a) What is the name we give the firm's marginal benefit in this case? b)What is the profit maximizing rule for the firm?

Consider an economy that produces and consumes bread and automobilies , In the following table are data for two different years

a)Using the year 2000 as the base year ,compute the following statistics for each year : nominal GDP ,real GDP ,the implicit price deflator for GDP ,and a fixed-weight price index such as the CPI

b)How much have prices risen between 2000 and 2010? Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference

c) Supopose you are a senator writing a bill to index Social Sewcurity and federal pensions. That is ,yout bill will adjust these benefits to offset changes in the cost of living. Will you use the GDP deflator or the CPI? Why?

The new management has identified several possible investments for the coming year. It has asked you and your team to evaluate the possibilities and make a recommendation to the board of directors. Jorge has identified two mutually exclusive opportunities (Investment A) and two independent opportunities (Investment B) and assigned you the task of making a recommendation on the investments.

Investment A

Your company would like to increase its product lines. Two alternatives are available, a new line of outdoor smokers and a new line of outdoor grills. The two lines are mutually exclusive, meaning that only one of these investment alternatives can be selected. The projected cash flows and their respective probabilities for each alternative are given in the table. There are three possible levels of demand and their corresponding probabilities, which depend on the state of the economy.

The two alternatives carry equal risk and should be evaluated at the company's cost of capital. The cost for the new smoker line will be $7,000,000. Also, the company has been guaranteed a buyer for the new line at the end of the fifth year. The buyer has agreed to purchase the new line for $7,900,000. The outdoor grill alternative will cost $3,987,000 and also has a guaranteed buyer, who has agreed to pay $4,000,000 at the end of the fifth year.

Jorge has asked you to provide detailed responses to the following:

Management of Vanda-Laye has determined that the capital structure of the company will involve 30% debt and 70% common equity. This structure will be used to finance all investments by the company. Currently, the company can sell new bonds at par, with a coupon rate of 7%. Any new common stock can be sold for $45, with a required return (or cost) of 15.57%. Using Microsoft Excel, calculate the company's cost of capital to be used in the evaluation of possible investment projects.

For Investment A:

Using Microsoft Excel, create a decision tree. Indicate the various levels of demand and their respective probabilities. Also, include the calculations for the expected cash flows.

Calculate the expected NPV for each alternative. Explain the decision rules for making a selection between the two alternatives on the basis of the expected NPV.

Assuming the two alternatives are mutually exclusive, specify which alternative you would recommend to the company. Explain why.

If the two alternatives were independent of each other, specify which project you would select. Would you accept both projects if funding were available for both? Explain your answer.

Now, it's a time for you to select a country to explore, and understand the complex and highly connected international business environment of your selected country, so that you can prepare a new International Business plan or existing Company expansion plan for your final project. Now, let us know:

2) Briefly describe your selected country PERU, why have you selected the country and how the country has been affected by globalization in last 5-10 years.

The presence of minimal relationship-specific investments and a highly economic environment suggests that the optimal input procurement method is

a. spot exchange

b. vertical integration

c. long-term contract

d. spot exchange or long term constract

QUESTION 11

If the demand for investment loans rises, this could be the result of

1 points

QUESTION 12

Which of the following statements is true?

1 points

QUESTION 13

Which of the following statements is true?

1 points

QUESTION 14

If there is an increase in the expected inflation rate, then,

1 points

QUESTION 15

If suddenly a 4 percent inflation rate (instead of a zero percent inflation rate) is expected by both suppliers and demanders in the loanable funds market, then

1. write a two- to three-page paper (600 words minimum) examining perfect competition in the value-menu fast-food restaurant business. Address the following questions in your paper:
   1. What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition?
   2. Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe how your firm would maximize its short-run profits.
   3. Why might firms in perfect competition choose to be open on Monday, typically the slowest day of the week, when their revenues do not seem to be sufficient to warrant doing so?
   4. What are the long-run benefits of running a firm in perfect competition?
   5. Under what conditions would your value-menu fast-food restaurant decide to be open on Mondays, and when would it decide not to be open on Mondays? When is losing money on Mondays still a good business decision?
   6. Explain how your experience as a manager would change if the value-menu fast-food restaurant you were in charge of operated under a different market structure?monopolistic competition, oligopoly, and monopoly. For example, in each case, how would you decide what price to charge? What would your profits look like? Would consumers be better off in terms of welfare, when you compare a firm in monopolistic competition, oligopoly, and monopoly to one in perfect competition?
2. Two sources in addition to your textbook are required for this paper.

Sociology

1. In what ways do both early and higher education affect social mobility and class position?

In the village of Never-land, six residents live each of whom has wealth of $100. Each resident may either invest his money in a government bond, which pays 12 percent per year, or use it to buy a one year-old steer, which will graze on the village commons (there being no individually owned grazing land in this village). Year-old steers and government bonds each cost exactly $100. Steers require no effort to tend and can be sold for a price that depends on the amount of weight they gain during the year. Yearly weight gain, in turn, depends on the number of steers that graze on the commons. The prices of 2-year-old steers are given in the following table:

1 120

2 118

3 114

4 111

5 108

6 105

The villagers make their investment decisions one after another, and their decisions are public.

a. Complete the following table:

b. If each villager decides individually how to invest, how many steers will be sent onto the commons, and why. What will be the resulting village income?

c. What is the socially optimal number of steers for this village? What would village income be if the socially optimal numbers of steers were sent onto the commons?

Explain the economics behind the following quote from the newspaper: “Among the reasons for a larger, more expensive home is the lot cost. Just two years ago, lots in some areas sold for $60,000. It doesn’t make sense to build a $50,000 home on lots that cost up to $150,000 today.

Q1. The notion of factor intensity refers to...

A the system of law and regulations adopted by a country

B the quantities of productive resources possessed by a country

C the technology possessed by a country

D the amount of labor per unit of capital used in production of a product

Q2. a Country is relatively abundant in Capital if...

A if it value of capital is higher than in the rest of the world

B The ratio of capital to labor (K/L) is relatively higher than in another country

C The ratio of labor to capital (L/K) is relatively higher than in another country

D The amount of capital required to produce one good is high

If consumers began eating more chicken and less beef, would the cattle population increase or decrease?

1. Explain whether the following actions will increase or decrease GDP:

1. Some Martians came down and let loose a million Martian burglars in the United States just to see what would happen.
2. Government increases Social Security payments.
3. Stock prices rise by 20 percent.
4. An unemployed worker gets a job