What is the present value of $ 1.21 received at the end of two years if the interest rate is 10 % and compounding is annual? The price elasticity of demand for a firm ' s product is equal to 1.8. The firm currently sells 4,000 units per day at a price of $ 2. If the firm increases its product price by 10 %, then it can expect to sell approximately A leading indicator is a measure that usually A security system company’ s total production costs depend on the number of systems produced according to the following equation, Total costs = $ 10,000,000 + $ 2,000 Q where Q is the quantity produced. What is the average total cost of production when 20,000 uits are produced? Buyers consider gasoline and SUV to be complements. If gasoline price increases, what would you expect to occur in the SUV market? Which of the following is an explicit cost to a firm? A country that has an abundance of cheap labor will tend to If Sam’ s, a local watering hole, increased the price of a pint of Guinness by 20 %, it estimates the number of MBA students purchasing Guinness would decrease by 4 %. Based on this data Use the information about marginal cost( MC) and marginal revenue( MR) that is presented in the table below to determine the profit maximizing level of output. A baseketball company is considerign purchasing a new machine that doubles capacity from producing 100 balls to 200 balls per day. The machine will occupy 1,000 square feet of unused space on the facotry floor. Which costs are irrelevant in this decision to purchase a machine? Regression analysis was used to estimate the following linear trend equation: St = 10.5 + 0.25 t Use this equation to forecast the value of the dependent variable( St) in time period of 10 In a freeenterprise system, profit is socially desirable because it If you are trying to determine the value of a firm, which of the following factors would be relevant?