Solutions to selected exercises from Jehle and Reny (2001): Advanced Microeconomic Theory Thomas Herzfeld September 2010 Contents 1 Mathematical Appendix 1.1 Chapter A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Chapter A2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Consumer Theory 2.1 Preferences and Utility . . . . . . 2.2 The Consumer’s Problem . . . . . 2.3 Indirect Utility and Expenditure . 2.4 Properties of Consumer Demand 2.5 Equilibrium
Premium Consumer theory Function
ISOM 111 L11‚ Fall 2010 1 Homework 1 Solutions I. An insurance agency is examining the dollar amount of claims from clients who have homeowners insurance. For the 900 people who filed claims‚ the five-number summary of the amount is: ($8800‚ $8850‚ $8900‚ $9100‚ $9940). (a) Would the histogram displaying the data for the 900 claims be nearly bell-shaped? If so‚ explain how the summary indicates this. If not‚ determine if the data is skewed left or skewed right‚ and explain how the summary
Premium Standard deviation Arithmetic mean Median
250 Initial investment Answer: Initial investment purchase price installation costs – after-tax proceeds from sale of old asset change in net working capital $55‚000 $7‚500 – $23‚750 $2‚000 $40‚750 CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Solutions to Problems Note: The MACRS depreciation percentages used in the following problems appear in Chapter 4‚ Table 4.2. The percentages are rounded to the nearest integer for ease in calculation. For simplification‚ 5-year-lived projects with 5 years
Premium Depreciation Generally Accepted Accounting Principles Operating cash flow
CHAPTER 12 Intangible Assets ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions 1. Intangible assets; concepts‚ definitions; items comprising intangible assets. 1‚ 2‚ 3‚ 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12‚ 13‚ 14 2. Patents; franchise; organization costs; trade name. 9‚ 10‚ 13‚ 14‚ 25 3. Goodwill. 4. 5. Brief Exercises Exercises Concepts Problems for Analysis 1‚ 2‚ 3‚ 5‚ 6 1‚ 2‚ 3‚ 4 1‚ 2‚ 3 1‚ 2‚ 3‚ 4‚ 5‚ 7‚ 12‚ 13 4‚ 5‚ 6
Premium Balance sheet Generally Accepted Accounting Principles Goodwill
SOLUTIONS MANUAL CHAPTER 15 PUT AND CALL OPTIONS PROBLEMS Exercise (strike) price 1. A stock has an exercise (strike) price of $40. a. If the stock price goes to $41.50‚ is the exchange likely to add a new strike price? b. If the stock price goes to $42.75 is the exchange likely to add a new strike price? 15-1. a) No. For stocks over $25‚ the normal interval is $5‚ with a new strike price added at the halfway point or $42.50 (between $40 and $45). b) Yes‚ the stock price has equaled or exceeded
Free Call option Strike price Option
Gina McArdle May 21‚ 2010 F 9-11:50 Be the Solution to Ocean Pollution Specific Purpose: To persuade my audience to minimize the amount of waste they contribute to the ocean litter and pollution Central Idea: The quality of the ocean and health of sea life is greatly impacted by the contents that go into the sea‚ so the people of this world should limit the amount of litter and pollutants that potentially contribute to this problem. INTRODUCTION I. Attention Getter: Breathe slowly
Premium Ocean Marine biology
Solutions to Problems and Exercises TABLE OF CONTENTS * Chapter 1 1 Concepts for Analysis 1-5 1 Concepts for Analysis 1-6 2 Concepts for Analysis 1-10 3 Concepts for Analysis 1-11 3 * Chapter 2 4 Brief Exercise 2-3 4 Brief Exercise 2-4 4 Brief Exercise 2-5 4 Exercise 2-3 5 * Chapter 3 6 Exercise 3-6 6 Exercise 3-9 6 Exercise 3-11 8 Exercise 3-14 10 Exercise 3-15 10 Exercise 3-16 10 * chapter 4 12 Exercise 4-2 12 Exercise 4-4 13 Exercise 4-5 16 Exercise 4-12 17
Premium Revenue Balance sheet Generally Accepted Accounting Principles
have to do away with the agriculture industry. However‚ while this is a great idea it is not ever going to work. As humans‚ we depend on this industry far more than we know. They provide us with food‚ both from crops as well as animals. The best solution to this problem is to create an environmental friendly fertilizer. While
Premium Agriculture Water quality Water
In "10 ethical issues raised by IT capabilities‚" we examined ethical issues raised by IT capabilities‚ issues that all of us as technology professionals need to consider as we go about our duties. This time‚ we take a look at ethical issues more specific to management--and not necessarily just IT management. Once again‚ one of our themes is that advances in technology‚ just like advances in any other area of endeavor‚ can generate societal changes that should cause us to reexamine our behavior.
Premium Security Ethics Business ethics
Exercise 11-1 (10 minutes) 1. 2. 3. Exercise 11-2 (10 minutes) Average operating assets £2‚200‚000 Net operating income £400‚000 Minimum required return: 16% × £2‚200‚000 352‚000 Residual income £ 48‚000 Exercise 11-3 (20 minutes) 1. Throughput time = Process time + Inspection time + Move time + Queue time = 2.8 days + 0.5 days + 0.7 days + 4.0 days = 8.0 days 2. Only process time is value-added time; therefore the manufacturing cycle efficiency
Premium Revenue Ratio Income