Select the statements that best explains the firm's constrained minimization problem.
a) The firm desires to produce as much output as possible by choosing values of L and K that minimize Rt+ WL.
b) The firm desires to produce a given quantity of output by choosing values of W and R that minimize Rt+ WL.
c) The firm desires to produce as much output as possible subject to the constraint that C = Rt+ WL.
d) The firm desires to produce a given quantity of output by choosing values of L and K that minimize Rt+ WL
Part c
Exercise 14-1 Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 1. Financial accounting focuses on providing information to internal users. 2. Staff positions are directly involved in the company's primary revenue-generating activities. 3. Preparation of budgets is part of financial accounting. 4. Managerial accounting applies only to merchandising and manufacturing companies. 5. Both managerial accounting and financial accounting deal with many of the same economic events. 6. Managerial accounting reports are prepared only quarterly and annually. 7. Financial accounting reports are general-purpose reports. 8. Managerial accounting reports pertain to subunits of the business. 9. Managerial accounting reports must comply with generally accepted accounting principles. V 10. The company treasurer reports directly to the vice president of operations. V2. The lessee's lease analysis Aa Aa Consider the case of Mitata Company: Mitata Company is considering the purchase of new manufacturing equipment that will cost $20,000 (including shipping and installation). Mitata can take out a four-year, $20,000 loan to pay for the equipment at an interest rate of 4.80%. The loan and purchase agreements will also contain the following provisions: . The annual maintenance expense for the equipment is expected to be $200. . The equipment has a four-year depreciable life. The Modified Accelerated Cost Recovery System's (MACRS) depreciation rates for a three-year asset are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. . The corporate tax rate for Mitata is 40%. Note: Mitata Company is allowed to take a full-year depreciation tax-saving deduction in the first year. Based on the preceding information, complete the following tables: Value Annual loan payment will be: Annual tax savings from maintenance will be: Year 1 Year 2 Year 3 Year 4 Tax savings from depreciation Net cash flow Thus, the net present value (NPV) cost of owning the asset will be: -$28,381 $15,582 -$12,378 O -$12,678(i) Do the variables crsgpa, cumgpa, and tothis have the expected estimated effects? Which of these variables are statistically significant at the 5% level? Does it matter which standard errors are used? (ii) Why does the hypothesis Ho: Bersend = 1 make sense? Test this hypothesis against the two-sided alternative at the 5% level, using both standard errors. Describe your conclusions. (iii) Test whether there is an in-season effect on term GPA, using both standard errors. Does the significance level at which the null can be rejected depend on the standard error used
