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Suppose the marginal propensity to consume (𝑀𝑃𝐶 = 𝑑𝐶⁄𝑑𝑌) is given by 10𝑌 1 5 − 4𝑒 − 1 4𝑌 + 1, where Y is the level of income and C is the level of consumption. When income is 0, consumption is 360. Find the consumption function.
Jason has the following utility function: U = F2C where F is food and C is clothing. Clothing is measured on the vertical axis while food is measured on the horizontal one.
Derive Jason's Marginal Rate of Substitution.
Does his Marginal Rate of Substitution stay constant along one of his indifference curves? Explain your answer clearly.
In a perfectly competitive and constant cost industry, all firms are identical. If the market demand function is: QD = 600P, a typical firm's cost function is: TC = 9³ - 20q² + 120q.
a. In the long run, what is the firm's equilibrium production decision?
b. In the long run, what is the market equilibrium price and quantity? What is the industry's long-run supply curve?
c. In the long run, how many firms will stay in the industry?
d. If the government decide to impost a $7 tax per unit, what is the new long-run equilibrium market price and quantity?
e. How many firms are producing after the tax?
A survey indicated that strawberry is Pakistan’s favorite ice cream flavor. For each of the following, indicate and discuss the possible effects on demand, supply, or both as well as equilibrium price and quantity of strawberry ice cream. (Also use graphical analysis for explanation)A new report by the International Medical Association reveals that chocolate does, in fact, have significant health benefits.
Let 𝑋 be a uniformly distributed random variable in [a,n]. The values of an independently drawn sample of size five from 𝑋 are given by {1.3, 0.8, 9.5, 20.2, 8.2}. Let â and ñ
denote the Maximum Likelihood Estimates for the parameters a and n, respectively. Then,
On May 1 Blake started a business and deposited Ksh 5,000,000 into a bank account opening specifically for the business.
a) Assume on May 3 2006 Blake buys a building for Kshs. 3,000,000 paying by cheque.
b) Blake purchased goods for resale for Kshs. 500,000 on account and agrees to pay after one week.
c) May 6 goods that had cost Blake Ksh 100,000 were sold to Brown for the same amount on account. Brown becomes a debtor
d) On May 13 goods which had cost shs 50,000 were sold to Dolley for the same amount and she paid immediately by cheque
e) On May 15 Blake pays a cheque for shs 200,000 to Smith in part payment of the amount
- owing.
f) J. Brown who owed Blake Ksh 100,000 makes part payment of Ksh. 75,000 by cheque on May 20 2006
Required
Prepare the initial financial statement position, make the effect the transactions on the statement and prepare the final Statement of financial position.
The short-run cost function of a company is given by the equation
TC = 200 + 55q
where TC is the total cost and q is the total quantity of output, both measured in thousands.
What is the company’s fixed cost?
If the company produced 100,000 units of goods, what would be its average variable cost?
What would be its marginal cost of production?
What would be its average fixed cost?
A painting company has a fixed cost of RM200 and the following schedule for variable costs. Calculate average fixed cost, average variable cost, and average total cost for each quantity. What is the efficient scale of the painting company?
Quantity of houses painted per month
1
2
3
4
5
6
7
Variable cost (RM)
10
20
40
80
160
320
640
Let 𝛼1̂ and 𝛼2̂ be two independent unbiased estimators of the parameter 𝛼 with standard errors 𝜎1 and 𝜎2, respectively, with 𝜎1 ≠ 𝜎2 . The linear combination of 𝛼1̂ and 𝛼2̂ that yields an unbiased estimator of 𝛼 with the minimum variance is
1. Company X wrote a check for 9,500.00 payable to Andrew Reyes and it cleared with the bank for the same amount. The accounting book of the company however shows that the same check issued to Mr. Reyes was recorded as 5,900.00. What is the effect of this entry to the bank or book balance? What will you do to reconcile the book and bank balances?
