Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a. An investment project requires an initial outlay of 7,500 and will pay back 2,000 at the end of the next 5 years. Is it
a. An investment project requires an initial outlay of 7,500 and will pay back 2,000 at the end of the next 5 years. Is it worthwhile if capital can be invested elsewhere at 12%? [3 Marks]. b. Given that the marginal propensity to consume (MPC) for a certain village is 0.8 and consumption is 40 when income is zero, find the consumption function and savings functions [4 Marks]. c. A manufacturer determines that D( p) = 5,000e-0.02p units of a particular commodity will be demanded (sold) when the price is p dollars per unit. Determine the price at which total revenue will be maximized[4 MARKS] d. A 2-hour movie runs continuously at a local theater. You leave for the theater without first checking the show times. Use an appropriate uniform density function to find the probability that you will arrive at the theater within 10 minutes of (before or after) the start of the film [4 MARKS]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started