Quizes on Micro-economics. Help please tutors.

No copied work please.

1.

For question (1); ANSWER ALL QUESTIONS IN AN EXCEL SPREADSHEET (ONE SHEET ONLY)

YOU MUST SHOW ALL WORKING AND EXPLAIN YOUR ANSWERS CLEARLY.

First order reaction kinetics 1. Determine In[A] from [A]. Use excel spreadsheet to plot In[A] vs. time. 2. Using the slope of the linear regression line for your linear curve or by using chart tools in excel spreadsheet, determine the rate constant, k. 3. Calculate the half-life from the rate constant, k using the appropriate concentration-time formula. time [A] In[A] WHAT IS THE REACTION RATE CONSTANT, K (SEC.1) FOR THIS (sec) mol/L REACTION? 0.01000 -4.6051 500 0,00800 -4.8283 1000 0.00639 -5.0530 CALCULATE THE HALF-LIFE FOR THIS REACTION (SEC)? 1500 0.00514 -5.2707 2000 0.00411 -5.4943 2500 0.00330 -5.7138 SELECT TWO POINTS, ONE WITH AN ABSORBANCE VALUE 3000 0.00264 -5.9369 THAT IS ABOUT HALF OF THE OTHER ABSORBANCE VALUE. THE TIME IT TAKES THE CONCENTRATION TO BE HALVED IS 3500 0.00212 -6.1563 KNOWN THE HALF-LIFE FOR THE REACTION. (THIS IS AN 4000 0.00169 -6.3830 ESTIMATE) 4500 0.00136 -6.60027 5000 0.00109 -6.2659\f1. Complete the regression process using Excel 2. Evaluate the statistical significance of the regression output 3. Convert the general form of the equation to the form "Q=a-bp" 4. Calculate the elasticity coefficients for each of the independent variables 5. Given MC equals zero, what is the optimum price and quantity in this scenario?SUMMARY OUTPUT Regression Statistics Multiple R|0.924656 R Square 0.854989 Adjusted R 0.82446 Standard El 183.162 Observation 24 ANOVA of SS MS F ignificance F Regression 4 3758225 939556.3 28.00606 9.85E-08 Residual 19 637418.1 33548.32 Total 23 4395643 Coefficientsandard Erre t Stat P value Lower 95% Upper 95% ower 95.02/pper 95.0%% Intercept 5999.092 2050.518 2.925647 0.008675 1707.309 10290.88 1707.309 10290.88 P 416.865 48.57303 -8.58224 5.816-08 -518.53 -315.201 -518.53 -315.201 M 0.176416 0.045971 3.837535 0.00111 0.080197 0.272635 0.080197 0.272635 Pa 51.22347 170.8736 0.299774 0.767604 -306.419 408.866 -306.419 408.866 Pb 8.846537 11.61267 0.7618 0.455532 -15.4591 33.15213 -15.4591 33.15213[6 marks] Suppose you have been offered a choice of two part-time jobs: 20 hours a week working at a pizza shop for $20 per hour and 2 'ee pizzas per week; or, 15 hours a week working at a high- end restaurant in the CBD for $25 per hour. Assuming that you will take only one of the jobs offered, state and explain: (a) The opportunity cost of taking the pi- shop job? I 2 marks] (b) The opportunity cost of taking the restaurant job? [2 marks] (c) How will you make a decision to choose between the jobs? 12 marks] [6 marks] Suppose that a rm has borrowed $2 million in the current year at 6% annual interest rate, with a commitment to repay the loan (principal and interest) in equal bi-monthly instalments over 10 years. Calculate from the lender's perspective: a) The complete total bi-monthly cash ow stream [2 marks] b) The complete principal stream of the cash ow [2 marks] c) The complete interest stream of the cash ow [2 marks] [10 marks] SEQwater is considering 3 mutually-exclusive plans A, B and C to extend the life of an old dam and some recreational facilities around it. The initial capital cost for all 3 projects is $50 million and the life extension for plans A, B and C will be for 6, 3 and 12 years respectively. From year 1 onwards, there will be annual maintenance cost of $3 million. $10 million and $15 million and annual benets from tourism worth $15million, $4million and $10million respectively for A, B and C. Create a net cash flow table for all the plans. Assuming a 5% cost of capital, how would you rank all the plans and why? Use two different methods to calculate your nal numerical values [4 marks] A project involving an initial investment of $100 million is mded jointly by debt and equity capital in the debt to equity ratio of 2.8. The internal rate of return on the overall net cash ow of the project is 23%, while the rate of interest on the debt capital is 10%. What is the (approximate) rate of return on equity capital? [6 marks] A public service ofcial is appraising a project proposal for a project to be done by a domestic rm. The project's present values of benets and costs, at market prices, are $2000 and $1150 respectively. If the project goes ahead. tax of $100 will be paid to the country, and pollution costing an estimated $250 will occur in the country. Assuming that the rm is a part of the referent group, what are the net present values generated by: a. The market/project benefit-cost analysis; [1 mark] b. The private benefit-cost analysis; [1 mark] c. The efficiency benefit-cost analysis; [1 mark] d. The referent group benefit-cost analysis? [1 mark] Would the firm want to go ahead with the project? Would the public official want to approve the project? Explain your answers [2 marks] 6. [6 marks] Consider the six projects described in the table below Project Capital Investment (year 0) PV of Net Benefits (excluding investment) A $120 $155 B $105 $160 C $135 $320 D $45 $105 E $75 $95 F $100 $245 a. In a situation of a budget constraint, in what order would you rank these projects assuming all are perfectly divisible? [3 marks] b. Assume you have a limited budget of $250 to finance the capital costs and all are perfectly divisible, how would you allocate your budget? (Assume you must use up the full $250 budget.) [1.5 marks] c. Assume you have a limited budget of $250 to finance the capital costs and that the projects are indivisible (lumpy), which project or combination of projects would you select? (Assume you must use up the full $250 budget.) [1.5 mark]Intermediate Microeconomics Name Homework 8. Expected Utility and Risk Aversion Solve the following problems. The answers to these problems include an analytical part and a graphical analysis part. Show all your work for the analytical part. Print the graphs from excel and on these graphs indicate the required measures - the expected value of the lottery, the expected utility, the certainty equivalent, and the Problem 1: Suppose that an individual has a Bernoulli utility function U(x) = In(x) a) Plot the function using excel. b) For the following lottery, (16, 4; 0.5, 0.5), calculate the expected value and the standard deviation of the lottery, the expected utility, the certainty equivalent, and the risk premium. Indicate them on the graph. c) For the following lottery, (13, 7; 0.5, 0.5), calculate the expected value and the standard deviation of the lottery, the expected utility, the certainty equivalent, and the risk premium Indicate them on the graph. How do these results compare to those at point b)? d) For the following lottery, (26, 14; 0.5, 0.5), calculate the expected value and the standard deviation of the lottery, the expected utility, the certainty equivalent, and the risk premium Indicate them on the graph. How do these results compare to those at point b)? e) For the following lottery, (16, 4; 0.75, 0.25), calculate the expected value and the standard deviation of the lottery, the expected utility, the certainty equivalent, and the risk premi Indicate them on the graph. f) For the following lottery, (16, 4; 0.25, 0.75), calculate the expected value and the standa deviation of the lottery, the expected utility, the certainty equivalent, and the risk prem Indicate them on the graph