Question
Explain what will happen to the MOH costs on a per-unit basis if fewer units are sold. Could it impact per unit cost? (keep in
Explain what will happen to the MOH costs on a per-unit basis if fewer units are sold. Could it impact per unit cost? (keep in mind the type of cost that MOH is for this company) 6. With the current Covid crisis, please discuss at least 3 financial issues that this company should be concerned about and suggestions to the board on how to address these issues. Is this an industry that has seen increased or decreased sales due toCovid? 7. If the company adds the molded door line, should ABC be considered? Why? Fully discuss all pertinent points and show calculations needed to support your answers. 8. To become more familiar with Financial Statements, understand the industry for this company, and find information through Edgar for SEC filings, please use Patrick Industries, Inc.(SIC 3714) information to answer the following questions only. The sections of the 10K that I would focus on to answer the questions below would be the following: business; risk factors; and Management Discussion and Analysis:
Companies may react to a sudden increase in demand by having workers work longer hours rather than hiring new workers. People who had previously left the labor force have now reentered in order to find work. If the size of the labor force increases at about the same rate as the number of employed workers, the unemployment rate will stay more or less the same. Six months of growth is too short a time to see an improvement in the unemployment rate. The lag between an increase in GDP and a drop in unemployment is typically 9 to 15 months.
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The Australian Prime Minister recently announced measure to help the economy from the Covid19 pandemic. The Australian government have introduced a financial grant for people to build their first home. The grant is worth $25,000. The owners must live in the house once its completed, and they must use local workers to build the house. How do you think this will help the Australian economy? Be specific, and provide examples in your answer. 2. Consider an economy. The growth rate of nominal GDP in the recent year was 8% and the growth rate of real GDP was 5%. What does such difference indicate? What do you think the government of this country should do next year?
Consider a pure exchange economy with two consumers, A and B, and two goods, x and y. Consumer A has endowment (3, 1). Consumer B's endowment is (0, 2). Both agents regard goods x and y as perfect (one-for-one) complements. (a) Depict this situation in an Edgeworth Box. (b) What is the contract curve for this economy? (c) What prices are consistent with general equilibrium in this economy? Can you determine the final allocation of goods that will result from market exchange at equilibrium prices? (d) How would your answers to (a)-(c) change if B regarded x and y as perfect (one-for-one) substitutes? (e) Your answers above may suggest that it is better not to have linear indifference curves in an Edgeworth Box economy. What is the intuition for this? Does this intuition apply in exchange economies with many more than two consumers?
Consider a pure exchange economy with two goods, wine (x) and cheese (y) and two con sumers, A and B. Let cheese be the numeraire good with price of $1. Consumer A's utility function is UA(x, y) = x/2y/2 while B's utility function is UB (x, y) = x/4/4. A's initial allocation is 30 units of x and 30 units of y. B's initial allocation is 70 units of x and 20 units of y. (a) Put wine r on the horizontal axis and cheese y on the vertical axis. Measure goods for consumer A from the lower left and goods for consumer B from the upper right. Mark the initial allocation with the letter W. Draw the indifference curves for each person through this point. Calculate utility at this allocation for both consumers. Is the initial resource allocation consistent with Pareto efficiency? Explain. (b) Identify the contract curve of Pareto efficient allocations in this economy and show this on your graph. (c) Find the competitive equilibrium prices and consumption for each type of consumer. Derive A's and B's demand functions (gross/Marshallian). Calculate the equilibrium price of wine assuming price of cheese is $1, using Walras' Law. (d) Verify that the First Fundamental Theorem of Welfare Economics holds.
Now consider a bank that invests in these projects. There are N=1,000 agents. All agents are identical ex ante in the above sense. Suppose they all deposit $1 each with the bank. The bank offers the following demand deposit contract (d, d) where di is the amount and agent can withdraw at T=1 and d is the amount he can withdraw at T=2. b) Suppose d=1.2. What is the amount d that the bank can offer an agent who withdraws at T=2? What is the expected utility of an agent? [4 Points] c) Suppose d=3.6. What is the amount d that the bank can offer an agent who withdraws at T=1? What is the expected utility of an agent? [4 Points] Suppose the bank offers (d,d) = (1.4, 3.6). An agent expects that M=640 other agents will withdraw at T=1. d) What is the best response of the type-2 consumer, i.e. does he has an incentive to run to the bank and withdraw at T=1? [3 Points] e) What is the maximum number of withdrawals at T=1 such that a type-2 consumer has no incentive to withdraw at T=1.
Consider an economy that lasts for T = periods. The parameters of the economy are gA = 0.02, gL = 0, s = 0.12, 8 = 0.1, a=0.5. Also, A = L = 1. When we refer to steady-states, we always refer to positive ones. That is, we never look at the uninteresting steady-state in which * = 0. 1. Compute the steady-state value of capital per unit of effective labor, k*, where capital per unit of effective labor at any time t is kt do not need to derive the formula for it, but it could be good practice to do so. = ALL. You 2. Show that if k> K*, then kt+1 < kt, and vice versa that if t < k*, then kt+1> kt. How do we call this property? To answer this question only, do not replace the model parameters with the values provided above. You can choose whether to answer with question analytically (that is, using formulas) or graphically. 3. Assume the economy in period t = 2 is at the steady-state (the same steady state you computed in question 1.). Compute the value of capital, K. Then, assume that in period t = 2 the growth rate of technology 9 increases to 0.04. Keep in mind that when the change happens, K has been already determined from savings in period t = 1. Compute k3 and K3.
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