Chapter 1: Bond Prices‚ Discount Factors and Arbitrage 1. Use this list of Treasury bond prices as of January 15‚ 2013 (which should be taken as the current date for all the questions below except for question 7) to derive the discount factors for cash flows to be received in 0.5‚ 1‚ 1.5 and 2 years. Bond Price 6.0s of 7/15/13 102-15+ 5.0s of 1/15/14 103-7 3/4 8.0s of 7/15/14 107-24 4.0s of 1/15/15 100-23 1/2 Answer: (a) To find d(0.5) The equation from the 6.0s of 15 July
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TIGER AIRWAYS V/S SINGAPORE AIRLINES Tiger Airways and Singapore airlines are two leading airlines in the Singapore region and I would be analyzing the market strategies applied by these to attract the customers. The two parameter to be compared will be 1) Cost Vs Luxury C IC 1 IC 2 C O O S S T T ’ BB’>AA’ A’ A A BB’<AA’ A’
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a) (i) Average cost curve as plotted in excel. (ii) For optimal quantity‚ differentiate the trend-line equation and equate it to 0. 2*0.0492x-0.5549 = 0 x = 5.639228 (iii) Optimal quantity is greater than combined quantity of 5 units; hence cost synergies will be realized by economies of scale. Both target and acquirer firm move closer to optimum quantity‚ the merger will produce cost synergies. b) (i) Average cost curve as plotted in excel.
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consumers (C1 ‚ C2 ‚ C3 ‚ C4 ) with the following utility functions: Consumer C1 C2 C3 C4 Utility Function u(x‚ y) = 3x + 2y 1 2 u(x‚ y) = x 3 y 3 u(x‚ y) = min(3x‚ y) u(x‚ y) = min(2x‚ 2y) On the appropriate graph below‚ draw each consumer’s indifferent curves through the following points: (2‚2)‚ (4‚4)‚ (6‚6) and (8‚8). C1 C2 10
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75 for metabolic rate‚ 0.25 for lifespan‚ and 1.25 for cerebral gray matter. 7. What is the respiratory quotient and what is the range of values observed? The ratio of CO2 expired to 02. Range of values is 0-250 ml 02/hr. 8. Now that non linear curve fitting methods can be easily accomplished by using standard personal computers‚ is there any compelling reason to transform equations so as to linearize the trends above? It helps because it smooths out the data instead of being all squished together
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graph and AFC‚ AVC‚ ATC‚ and MC on another. c. At what point is average total cost minimized? At what point is average variable cost minimized? Chapter 6 Technical Question 3 Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economics of scale and a wide range of output over which long-run average cost is constant;
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what is going on and say that is a really great question I was actually think something similar. Do you mind if I ask a question (look at the peers almost for acknowledgment and then just ask) by the way my name is Matt I recognize the learning curve will be quick I understand for me to be a contributor for this team. I want to have the tools necessary for me to do this … can you tell me what the learning process is here and how you handled it? Is there anything I can do now that can better prepare
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to $4 and the price of Y rose to $9‚ how much would Murphy’s income have to rise so that he could still afford his original bundle? a. $700 b. $450 c. $350 d. $1‚050 5. Charlie has the utility function U(xA‚ xB) = xAxB. His indifference curve passing through 15 apples and 16 bananas will also pass through the point where he consumes 3 apples and a. 40 bananas. b. 83 bananas. c. 20 bananas. d. 87 bananas. e. 80 bananas. 1 6. Harmon’s utility function is U(x1‚ x2) = x1x2.
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households will shift toward purchasing raisins from purchasing relatively more expensive goods. This is the substitution effect. Both effects imply that the quantity of raisins demanded will rise as the price of raisins falls. 4. Using indifference curves and budget constraints‚ explain how a consumer maximizes utility. Show how
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Micro-Economics Report of Microeconomics Submitted by: Sultan Lashari 10 2629 Submitted To: SIR MICHAEL SIMON Program: BACHELORS OF BUSINESS ADMINISTRATION FALL 2010 ------------------------------------------------- National University of Computer & Emerging Science Management
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