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
Answer:
d. If processed further, the company stands to gain $12 for each unit.
Explanation:
To make the decision, we begin by evaluating the costs and profits associated with each option on a per unit basis.
Profit from the unassembled product is calculated as follows:
Profit = 135 - 60 = $75 for each unit
Profit from the assembled product totals:
Profit = 174 - 60 - 27 = $87 for each unit
Thus, the difference in profit stands at 87 - 75 = $12/unit once assembled.
Accordingly, the company should continue processing further, resulting in an added $12 gain for every unit sold.
Hope that helps.
Policy 1: The price at the end of year 4 is calculated as D5/(rs-g) = 3 /(.12-.02) = 3/.10 = $30 per share. The current price is determined using PVF12%,4* Price at year 4 =.63552 * 30 = $19.07 per share. Policy 2: The price at the end of year 4 is D5/(rs-g) = 2 /(.12-.06) = 3/.06 = $50 per share. The current price is then calculated as PVF12%,4* Price at year 4 =.63552 * 50 = $31.78 per share. Policy 2 should be favored as it offers a higher market price per share.
Answer:
An auto loan is financial assistance taken to acquire an automobile. These loans generally function as installment loans and are secured by the worth of the car being financed. In essence, a car loan serves as a personal loan utilized specifically for purchasing a vehicle. In return, the borrower must repay the lender the amount borrowed plus interest, typically in monthly installments, until the debt is fully settled.
Obtaining a car may positively impact your credit history if the payments are made punctually and as agreed. On the other hand, failing to make timely payments can harm your credit score. When applying for a car loan, your application is often evaluated by multiple lenders, and each lender's review adds a new inquiry to your credit report.
Explanation:
Answer:
-4 units
Explanation:
Applying the midpoint method, Blake's income elasticity of demand for generic potato chips is determined by multiplying the change in demand (D) by his average income (I), then dividing by the product of the change in income and average demand:
Thus, Blake's income elasticity of demand equals -4 units.
