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Marginal cost is the amount that


What causes a backward bending labour supply curve?

Tom, jack and harry ltd paid a dividend of 120 cents. The dividends are expected to grow by 40% per annum during the 3 year supernormal growth period when the cost of equity is 30%, then grow at 20% per annum thereafter when the cost of equity is 25%.


(a) Calculate the value of shares of tom, jack and harry.

(b) if dividends are not expected to grow after the supernormal growth period, what will be the value of the stock of tom, jack and harry ltd


EXPLAIN WITH THE HELP OF GRAPH, A monopolist has a cost


function 200q + 15Q2


and faces a demand function given by P= 1200 – 10Q. Calculate total


revenue, marginal revenue, output and price that maximize profit-maximizing? What is its


maximal profit?

 The cost of producing a certain item consist of P102 per unit for labor and material cost and P54 per  unit for other variable cost. The fixed cost per month amounts to P850,000. The item is sold at P740 each. 

a. Determine the break-even quantity per month. 

b. How many units must be produced each month in order that the net profit equals the cost?

c. What is the net profit it for a production of 4,000 units per month, in pesos? 




Construct graph and explain income and substitution effect of a price change for food

(on X-axis) and cloth (on Y-axis) when a) food is a normal good and b) food is an inferior

good. Suppose price of food is continuously decreasing, with no change in the price of cloth

and income, what curves can you derive from this change?


Why measuring price, income, cross and advertisement elasticities of demand for an

insurance product is good for the growth of the sector? Use supply and demand curves to

illustrate how each of the following events would affect the price/ or premium and quantity of

a private health insurance policy a) if you get benefits under swasthya bema yojna of the state

government b) a decrease in your average income level during pandemic c) if policy

premiums are expected to increase in coming future and d) if more tax benefits are provided

for taking this policy.


How to drive indirect utility function and expenditure function, using X raised to the power of alpha and Y raised to the power of beta [X^alpha multiple by Y^beta] as our Utility function, and Px•X + py•Y= I as our budget constrain




Scarce means with alternative uses


Hi


Can somebody help with me with the below? 

Thanks in advance


Information:


Q = 33.33 - 0.000004167 * P + 0.04167 * PCO2 - 0.4167 * r - 0.00833 * Pel, where


Q is the quantity sold, P is the price, PCO2 is the price of the EU's CO2 quotas, measured in euros per tonnes, cf. Chart 1, r is the banks' average lending rate measured in per cent. pa., and Pel is the Nordpool wholesale price of electricity excl. network and system tariffs as well as charges, measured as Danish kroner per MWh (mega-watt-time).


P can here be set to DKK 4,000,000, PCO2 can be set to 62, r to 2.37 and Pel can be set to 250.


Question:


Calculate the price elasticity as well the cross-price elasticities with regard to as well The CO2 price, the interest rate and the electricity price. Then discuss whether the signs on the price elasticities can be justified.


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