Response:
Q = 435/22.5 = 19 streetlights
Clarification:
Given that the streetlights represent a public good
To derive the market demand curve, we sum them in a vertical manner
P = 20*20Q - 20*Q
P = 5*( - 5*Q/2
thus
P = 445 - 22.5Q
The social optimum quantity of streetlights
MB20 + MB5 = MC
400 - 20Q + 45 - 2.5Q = 10
22.5Q = 435
Q = 435/22.5 = 19 streetlights
Explanation:
In Nepal, the most common method of filing is alphabetical.
If multiple names begin with the same letter, the next letter in each name is considered. This approach offers flexibility.
Answer:
Option (D) is the right choice.
Explanation:
According to the Modigliani-Miller proposition, the cost of equity will adjust in a way to accommodate its debt obligations.
Cost of equity:
= WACC for an all-equity firm + (WACC for an all-equity firm - Cost of debt ) × (Debt-to-equity ratio)
Initially, when no debt was present,[ [TAG_20]]
WACC = cost of equity = 10%
The levered cost of equity:
= 10% + ( 10% - 6%) × 0.2
= 10.8%
Thus, Taggart's levered cost of equity would be approximately 11%.
Answer:The marginal propensity to consume (MPC) is 0.65
The multiplier or k = 2.85714 rounded to 2.86
Explanation:
The MPC pertains to the fraction of additional disposable income that consumers choose to spend. It is used to gauge the consumption increase driven by rising income.
MPC can be calculated as follows,
MPC = Change in consumption / change in income
MPC = 0.65 / 1
MPC = 0.65
To derive the multiplier, we apply this formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.65)
k = 2.85714 rounded to 2.86
Answer:
Dow Jones Industrial Average on May 30, 2017:
As stated on valueline.com, on May 30, 2017, the Dow Jones Industrial Average concluded at 21029.47, reflecting a decrease of 50.81.
Closing index = 21029.47
minus the decline = 50.81
Opening index = 21080.28
This indicates that the opening figure was 21080.28.
Explanation:
The Dow Jones Industrial Average tracks the stock performance of 30 significant companies listed on U.S. stock exchanges. This is classified as a stock price index, alongside the S&P 500 and NASDAQ.
The opening index reflects the average price at the start of the trading day before any trades occurred. Throughout the trading period, prices likely fluctuated with various movements. By the trading day's conclusion, the closing price recorded was 21029.47, with a downward change of 50.81.
From this closing index data, one can deduce that the opening price exceeded the closing price by 50.81 or approximately 51 basis points.
