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Opportunity cost is all about making choices and how you adequately and effectively manage it. What do you understand by the concepts of intra and inter temporal choice models in Managerial Economics, further as a fresh graduate of MSc in Managerial Economics, clearly demonstrate how intra and inter temporal choice models can make society incur an opportunity cost if not managed adequately and effectively ?
A firm has the following revenue and cost functions.
TR = 120 Q – Q2
TC = 1/2 Q2 +30 Q + 10
Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
A. Discuss any key considerations that you may pay attention to when making
investment decisions for financial management.
B. Hankede is interested in determining the time period for his K3,600 to accumulate
to K4,000 if saved today. How long will it take for Hankede to achieve his objective
with semiannual compound rate of interest of 6% per annum?
C. A company has borrowed K800,000 from a bank. The loan is to be repaid by level
instalments, payable annually in arrears for 10 years from the date the loan is
made. The annual repayments are based on an effective rate of interest of 8% per
annum.
I. Calculate the amount of the level annual payment which will be paid over
the 10-year term.
II. Construct an amortization schedule showing the capital and interest
components over the first four years of the loan.
Explain why the Marginal Revenue Product of Labour curve for a firm that competes for labour in the factor market is also the firm's demand curve for labour
Discuss the relevance of marginal revenue productivity theory in wage determination within contemporary, real-world labour markets.
if income increases or the price of a compliments falls
Built-Rite Corp is evaluating an extra dividend versus a share repurchase. In either case $20,000 would be spent. Current earnings are $6.0 per share, and the stock currently sells for $40 per share. There are 4,000 shares outstanding. Ignore taxes and other imperfections in answering parts (a) and (b).
a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth.
b. What will be the effect on Built-Rite Corp’s EPS and PE ratio under the two different scenarios?
c. In the real world, which of these actions would you recommend? Why?
A neighbor barking dog can be both a positive externality and a negative externality .under what circumstances would a dogs bark be positive externality? Under what circumstance would a dog bark be an negative externality
State the assumptions of the Heckscher–Ohlin the-
ory. What is the meaning and importance of each
of these assumptions?
In what ways does the Heckscher–Ohlin theory
represent an extension of the trade model pre-
sented in the previous chapters? What did classical
economists say on these matters?
