In a two-period model, suppose that a consumer's utility function is: U(C₁, C₂) = log(c₁) + log(c₂)
where C₁, C₂ are the consumption of a good (orange) in the two periods. Let the endowment real income in the two periods be 2, 1 respectively. The real interest rate is unknown and is to be determined in the equilibrium. Assume that all consumers are identical. *
Solve the demand for c₁ given any real interest rate r. Find the level of the real interest rate such that the market clears in Period 1
Answers
In the given two-period model with a utility function and endowment income, we need to determine the demand for consumption in period 1 (c₁) given any real interest rate (r). By solving the consumer's optimization problem, we can find the level of real interest rate that clears the market in period 1.
To find the demand for c₁, we can set up the consumer's optimization problem by maximizing the utility function subject to the budget constraint. The budget constraint can be expressed as c₁ + (1 + r)c₂ = 2 + (1 + r). By using the Lagrange method or directly differentiating the utility function, we can find the first-order condition for optimal consumption, which is c₁ = (1 + r)/2.
To clear the market in period 1, the demand for c₁ should equal the endowment income in period 1, which is 2. Therefore, we have (1 + r)/2 = 2, which implies 1 + r = 4. Solving for r, we find that the level of real interest rate that clears the market in period 1 is r = 3.
Thus, at a real interest rate of 3, the demand for c₁ will be 2, and the market will clear in period 1.
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Related Questions
The regional sales department for Xerox copiers may be classified as a(n) A) cost center. B) investment center. C) profit center. D) revenue center.
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The regional sales department for Xerox copiers is most likely classified as a profit center. A profit center is a department or division within a company that is responsible for generating revenue and earning profits.
Since the regional sales department is responsible for selling Xerox copiers and earning revenue from those sales, it can be classified as a profit center. On the other hand, a cost center is a department or division that is responsible for incurring expenses, such as an administrative department. An investment center is a department or division that is responsible for investing company funds and earning a return on those investments. A revenue center is a department or division that is responsible for earning revenue, but may not necessarily be focused on profitability. In conclusion, the regional sales department for Xerox copiers is most likely classified as a profit center since its main focus is on generating revenue and earning profits for the company.
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what is intertropical means?
Answers
Answer:
Explanation:
situated between or within the tropics. or relating to regions within the tropics : tropical.
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A firm's cost of capital is often a reflection of its activities and funding needs. Consider the case of Wizard Company and answer the following questions: Wizard Co. currently has only a real estate division and uses only equity capital; however, it is considering creating consulting and distribution divisions. Its beta is currently 1.3. The risk-free rate is 4.8%, and the market risk premium is 5.8%. This means that the firm's real estate division will have a cost of capital of: 11.04% 12.34% 9.60% 3.36% The consulting division is expected to have a beta of 1.9, because it will be riskier than the firm's real estate division. This means that the firm's consulting division will have a cost of capital of: 15.82% 16.77% 17.17% 18.32% The distribution division will have less risk than the firm's real estate division, so its beta is expected to be 0.4. This means that the distribution division's cost of capital will be: 7.12% 17.77% 16.57% 17.87% Wizard Co. expects 65% of its total value to end up in the real estate division, 25% in the consulting division, and 10% in the distribution division. Based on this information, what rate of return should its investors require once it opens the new divisions? (Note: Round your intermediate calculations to two decimal places.) 12.69% 15.54% 13.99% 17.44%
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The cost of capital for Wizard Co.'s real estate division can be calculated using the Capital Asset Pricing Model (CAPM). The formula is:
Cost of Capital = Risk-Free Rate + Beta * Market Risk Premium
Given that the beta for the real estate division is not provided, we can assume it to be the same as the current beta of the firm, which is 1.3.
Cost of Capital for Real Estate Division = 4.8% + 1.3 * 5.8% = 12.34%
For the consulting division, the given beta is 1.9.
Cost of Capital for Consulting Division = 4.8% + 1.9 * 5.8% = 16.77%
The distribution division has a beta of 0.4.
Cost of Capital for Distribution Division = 4.8% + 0.4 * 5.8% = 7.12%
To determine the rate of return required by investors, we need to calculate a weighted average cost of capital (WACC) based on the divisional weights provided.
WACC = (Weight of Real Estate * Cost of Capital for Real Estate) + (Weight of Consulting * Cost of Capital for Consulting) + (Weight of Distribution * Cost of Capital for Distribution)
WACC = (65% * 12.34%) + (25% * 16.77%) + (10% * 7.12%) = 13.99%
Therefore, the rate of return that Wizard Co.'s investors should require once it opens the new divisions is approximately 13.99%.
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companies such as dell and boeing have set up captive leasing companies primarily to
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Companies such as Dell and Boeing have set up captive leasing companies primarily to gain more control over their supply chains and reduce their costs.
Captive leasing companies allow these companies to finance and lease their own equipment or products, instead of relying on external leasing companies. This provides them with more flexibility in managing their assets, as well as greater control over the quality and maintenance of their equipment. Additionally, captive leasing companies can provide a source of steady income through lease payments, which can help these companies to manage their cash flow more effectively. Overall, captive leasing companies are an effective way for companies to improve their operational efficiency and reduce their costs, while also maintaining a higher level of control over their assets and supply chains.
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In response to the greatest financial crisis since the Great Depression of the 1930s, the ______ administration proposed to overhaul regulation and increase oversight of the financial system.
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Answer:
In response to the greatest financial crisis since the Great Depression of the 1930s, the Obama administration proposed to overhaul regulation and increase oversight of the financial system.
Explanation:
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Which of the following is an advantage of starting your own business?
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Answer:
The most common reason people launch their own business is to be their own boss. Other benefits include flexibility, financial rewards, the opportunity to innovate, and a chance to impact your community. Still, there are serious risks to launching your own business, and you should carefully consider and plan before you take the leap.
Explanation:
Which type of market are you in if your company, along with three other companies, controls 95 percent of the total music industry? A. monopolistic competition B. perfect competition C. monopoly D. oligopoly
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Answer: the answer to your question is D) oligopoly
Explanation:
Answer:
it's D. oligopoly
Explanation:
Oligopoly is a market structure where only a few large firms control a major share of the market.
Reinvesting cash flow allows a firm produce additional products and generate additional sales.
O True
O False
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20 POINTS AND WILL GIVE BRAINLY
PLS ANSWER
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an employee that is having trouble paying his personal bills might exhibit the following fraud factor:
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An employee that is having trouble paying his personal bills might exhibit Pressure.
When you are under pressure, you are in a situation where something is at stake and the outcome is dependent on your performance. Moments of pressure transform into feelings of having to perform successfully, often with an accompanying sense of impending doom if you don't. When under pressure, your goal is to perform, to deliver the goods.
Pressure can be real or perceived, and it can be created by other people or entire groups. A parent can put pressure on their child to do well on a test, or thousands of sports fans can put pressure on an athlete to score the winning point. Some pressure and stress can actually be beneficial to performance; studies show that the right amount of stress can help you perform better. However, too much pressure and stress can impair performance and even cause freezing or choking. Pressure can be beneficial or detrimental to performance depending on one's level of confidence and proficiency.
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a cylinder shaped can needs to be constructed to hold 250 cubic centimeters of soup. the material for the sides of the can costs 0.03 cents per square centimeter. the material for the top and bottom of the can need to be thicker, and costs 0.06 cents per square centimeter. find the dimensions for the can that will minimize production cost (round to 4 digits).
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Let, r be the radius and h be the height of cylinder If alternate outgrowth of a function is lower than zero also equating first outgrowth to zero gives condition at which the functions attains minimum value.
And if alternate outgrowth is lower than zero equating first secondary to zero gives condition for at which event attains maximum value. Let r be the radius and h be the height of cylinder, If alternate outgrowth of a function is lower than zero also equating first outgrowth to zero gives condition at which the functions attains minimum value. And if alternate outgrowth is lower than zero equating first secondary to zero gives condition for at which function attains maximum value.
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How many milliliters are in 1 quart?
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For each of the following situations specify the state transition for a process in a process life cycle and the event that causes transition: 1. Time quantum of a process is up while executing in a round Robin scheduling system 2. Process encounters a scanf() 3. Program a.out is launched on the terminal
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The following are the state transitions for each of the given situations in the process life cycle, and the events that cause them:
1. Time quantum of a process is up while executing in a round Robin scheduling system: The state transition that occurs when the time quantum of a process is up is from the Running state to the Ready state. This happens because the process no longer has the CPU and is now waiting in the ready queue for its next turn to execute. This is caused by the scheduler interrupting the process after its time quantum has expired.
2. Process encounters a scanf(): The state transition that occurs when a process encounters a scanf() is from the Running state to the Blocked state. This happens because the process is waiting for user input and cannot proceed until it is received. This is caused by the system waiting for user input from the terminal or console.
3. Program a out is launched on the terminal: The state transition that occurs when a program a.out is launched on the terminal is from the New state to the Ready state. This happens because the process has been loaded into memory and is now ready to be executed. This is caused by the user issuing a command to run the program from the command line or shell.
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In general, when dealing with an adhesion contract, courts willAssume that the non-drafter had no real opportunity to bargain for the terms
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In general, when dealing with an adhesion contract, courts will not implement each and every clause of the agreement.
Adhesion contracts are usually heavily weighted in favor of the third party, so courts will usually solve them more slightly than other kinds of contracts. Courts have traditionally used the rule of good expectations to determine whether an adhesion contract is good or not.
According to Adhesion contracts theory, if the contract clashes go above what the weaker party could well expect, the entire adhesion contract, or certain elements may not be correct, then it may be considered unenforceable by the court.
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Which of the following describes a conflict which happens between a supervisor and a subordinate?
O Intrapersonal conflict
Group conflict
O Intergroup conflict
O Interpersonal conflict
Answers
A conflict between a supervisor and a subordinate can be described as Interpersonal conflict.
What is interpersonal conflict?Interpersonal conflict refers to conflict whereby there are at least two people involved. This means that interpersonal conflict refer to issues that a person has with another person, or group of people.
When there is a conflict between a supervisor and a subordinate, these are two different people which means that it is therefore an interpersonal conflict. Intrapersonal conflict on the other hand, refers to when a person has a conflict within themselves about how they should take certain decisions.
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Identify a decision you have made recently. In a paragraph of 125 words, explain the process you used to make the decision. Share how you feel about the decision you made: Was it successful? Was it the best possible decision? Describe how using the seven-step decision-making process might have changed the outcome of your decision.
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I recently made a business decision, on whether to start a car wash firm or to sell stationeries. my decision was to try to decide on the problems and solutions associated with each business, and the viability.
Decision making processWhen making a reсent decisiоn, I started by identifying thе рroblem аnd gathеring informаtion. Тhen, I brainstormed possiblе sоlutiоns аnd еvaluatеd eаch onе based on its feаsibility, cost, аnd potеntial outcome. Aftеr weighing thе prоs аnd cоns, I сhose thе sоlutiоn that seemed to be thе most effeсtive аnd aligned with my values. I fеlt cоnfident in my decisiоn аnd implеmеntеd it, taking note оf аny feedbaсk or adjustments that might be necessаry.
Looking baсk, using thе seven-steр decisiоn-making proсess could hаve hеlpеd me make an even morе informеd аnd effeсtive decisiоn. The proсess involvеs defining thе рroblem, sеtting goals, identifying altеrnativеs, evаluаting altеrnativеs, seleсting thе best аlternаtive, imрlementing thе decisiоn, аnd evаluаting thе results. Вy going through eаch steр in morе detail, I might hаve been аble to cоnsider additional fаctors аnd oрtions, leading to an even better outcome. Anyway, I am sаtisfied with thе decisiоn I made аnd believe it was suссessful given thе informаtion аnd resources availаble to me at thе time.
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Analysts say visitors stay an average of how many seconds on any webpage?
A. 1-2 Seconds
B. 5-15 Seconds
C. 10-20 Seconds
D. 45-60 Seconds
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Type the correct answer in the box. Spell all words correctly.
Which type of facility layout groups similar machines together so that they carry out specific functions?
In the case of a (blank) layout, similar machines are grouped together to carry out specific functions.
Answers
Answer:
A process layout groups similar activities together according to the functions they perform.
Explanation:
Answer:
process
Explanation:
Plato/Edmentum
an undesirable schedule variance always indicates that the project is running behind schedule. (True or False)
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The given statment" An undesirable schedule variance does not always indicate that the project is running behind schedule" is True. because Schedule variance is a metric used in project management to measure the difference between the planned progress and the actual progress of a project.
It is calculated by subtracting the planned value (PV) from the earned value (EV) of a project (SV = EV - PV).
A negative schedule variance implies that the project is behind its planned schedule, while a positive variance suggests that the project is ahead of its planned schedule. However, an undesirable schedule variance can occur in either situation, depending on the specific circumstances and goals of the project.
For instance, a project with a positive schedule variance might still be considered undesirable if the accelerated progress is causing a strain on resources or negatively impacting the quality of work being produced. Similarly, a project with a small negative schedule variance might be deemed acceptable if the delay is due to necessary adjustments or improvements that will ultimately lead to a more successful outcome.
In conclusion, an undesirable schedule variance is not solely indicative of a project running behind schedule. It is crucial for project managers to analyze the context and contributing factors of a schedule variance to make informed decisions and optimize the project's overall success.
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Which of the following elements comprise strategic management? (Check all that apply.)Multiple select question.a. formulationb. implementationc. realizationd. analysise. definition
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The three main components of strategic management are strategic analysis, strategic choice, and strategy implementation.
Which components make up strategic management?Strategic management frequently entails strategy assessment, internal organization analysis, and company-wide strategy implementation.
What are the five components of strategy?These five components of strategy are arenas, differentiators, vehicles, staging, and economic logic. Donald Hambrick and James Fredrickson, two strategists, created this paradigm.
What are the fundamental four components of strategy?Visioning, goal-setting, resource allocation, and prioritization are the four most commonly acknowledged fundamental elements of corporate strategy.
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If the current level of real GDP is below potential GDP, an appropriate fiscal policy would be to _____, which will shift the _____ curve to the _____.
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If the current level of real GDP is below potential GDP, an appropriate fiscal policy would be to implement an expansionary fiscal policy, which will shift the aggregate demand curve to the right.
Real GDP represents the total output of goods and services produced in an economy, adjusted for inflation. Potential GDP, on the other hand, represents the maximum level of output that an economy can produce when all of its resources are fully employed. When the current level of real GDP is below potential GDP, it indicates that the economy is operating below its full potential. To address this issue, policymakers may implement fiscal policy, which involves the use of potential and taxation to influence the level of aggregate demand in the economy. Expansionary fiscal policy involves increasing government spending and/or reducing taxes, which increases aggregate demand and can stimulate economic growth. By increasing aggregate demand, expansionary fiscal policy can help to close the gap between real GDP and potential GDP. This shift in aggregate demand can lead to increased production, higher employment levels, and ultimately, higher levels of real GDP. It is important to note that fiscal policy is not without its drawbacks. Increasing government spending or reducing taxes can lead to higher inflation if the economy is already operating at or near full capacity.
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ECONOMICS CHAPTER 2 SECTION 3
explain the relationship between the terms in each of these pairs
A. Private property rights and market
B. laissez-faire and capitalism
C. Specialization and profit
D. Factor market and product market
ECONOMICS CHAPTER 2 SECTION 3
Answers
Private property rights and market is in which people buy and sell resources or goods and services.
Private property rights are the rights of individuals and groups to own property and the market is any place or situation in which people buy and sell resources and goods and services.
Laissez-faire and capitalism-The relation-ship between laissez-faire and capitalism is laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention.
Specialization and profit- The relation-ship between specialization and profit is the companies specialize in making one product or one component of a product, if this product will make at large scale, companies reduces it's cost to earn profit.
Factor market and product market- The relation-ship between Factor market and product market is the factor market is running by the demand of product market. The product market is sold their goods and services with the demand of factor market to production these goods and services.
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1. Give the three (3)
business resources
Answers
Answer:
Financial Resources
Human Resources
Educational Resources
Explanation:
Question 9 of 10
If a new source of lumber is found, what is likely to happen to the price of
lumber, and why?
A. The price is likely to increase because demand will increase.
B. The price is likely to increase because costs of production will
increase
C. The price is likely to decrease because demand will decrease.
O D. The price is likely to decrease because supply has increased.
SUBMIT
Answers
Answer:
O D. The price is likely to decrease because supply has increased.
SUBMIT
Explanation:
A new source of lumber will result in an increase in the quantity available for sale. As per the laws of supply and demand, an increase in supply without a corresponding increase in demand leads to reduced prices.
The prevailing market price or equilibrium price is the price at which the current demand matches the current supply. There are no shortages or excesses. An increase in supply creates a surplus in the market. For suppliers to sell the excess lumber supplied, they have to reduce prices to create more demand.
Which two channels are examples of physical sales channels?
a)Auction marketplaces
b)General marketplaces
c)Wholesalers
d) Retail stores
Answers
Answer: retail stores and general marketplaces
Explanation:
Answer:
retail stores
Explanation:
Which condition is a result of open competition in a free market system?
A. Poor customer service
B. Government regulation
C. Higher prices
D. Higher quality goods
Answers
A result of open competition in a free market system is higher quality goods (option D).
What is the result of open competition?
Competition is when there are many producers operating in a particular industry. Competition is high in purely competitive markets and low in a monopoly. This is because in a pure competition, there are many producers while there is only one producer in a monopoly.
Due to the high level of competition in an industry, prices would be more likely to be low. This is because producers would want to attract more consumers by fairly pricing their goods. Also, producers would want to offer good customer service in order to retain consumers as there are many competing producers in the market. High quality goods are also a way to attract an retain customers.
A free market system is a market system where prices are set by the forces of demand and supply. There is no government regulation in this type of market.
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Distinguish between the sources of information about foreign employment and the ways of getting it.
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Working for a company in another country is referred to as foreign employment, and you usually only work in one country. This wouldn't be your native country .
While the terms "foreign employment" and "international workforce" (people of a different nationality) are sometimes used interchangeably, the term really refers to a multinational corporation expanding outside of its home country and recruiting there.
Employers prefer foreign employment because they cannot find qualified local employees, necessitating the hiring of foreigners to do the job.
The following are some methods for obtaining information about foreign employment:
Newspapers, notice boards, electronic media (radio, FM, television, etc.), websites, and public programs
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Which of the following is not an example of a multichannel retailer?
A. Abercrombie & Fitch
B.McDonald's
C.Target
D.None of the above
Answers
Answer:
mcdonalds!!!!
Explanation:
!its right trust me those ppl who commented above are wrong, i put it in on od and it was right! on god bro.
Two bonds have identical times to maturity and coupon rates. One is callable at 105, the other at 110. Which has the higher yield to maturity?A. The bond callable at 105B. The bond callable at 110C. Both bonds should sell at the same priceD. Do not have enough information to answer this question
Answers
The answer to this question is D. We do not have enough information to answer this question because the yield to maturity of the two bonds can depend on other factors such as the quality of the issuer and the interest rate environment.
For example, if the interest rate environment is quite low, the bond callable at 105 may have a higher yield to maturity than the bond callable at 110 as investors may be more willing to accept the lower call price in exchange for a higher yield.
On the other hand, if the interest rate environment is higher, the bond callable at 110 may have a higher yield to maturity than the bond callable at 105 as investors may be more willing to accept the higher call price in exchange for a higher yield. Therefore, without more information, we do not have enough information to answer this question.
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to what extent have the seven principles of supply chain management remained current? what are some of the major changes that have occurred since they were first developed?
Answers
The seven principles of supply chain management have remained current, but some changes have occurred due to advancements in technology, globalization, and increasing customer demands for sustainability and transparency in supply chain operations.
The seven principles of supply chain management were first introduced by David Anderson, Frank Britt, and Donavon Favre in 1997. These principles include customer focus, continuous improvement, strategic alignment, integration, information sharing, supplier partnerships, and network-based. While these principles are still relevant, advancements in technology have led to increased automation, digitization, and the use of data analytics in supply chain management.
Globalization has also led to complex supply chain networks with more players involved, and the increasing demand for sustainability and transparency has resulted in a greater focus on ethical sourcing and supply chain visibility.
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