Managerial Economic

gerial Economic (Questions and answers 100% verified) March 12, 2023 Introduction The production, consumption, and distribution of goods and services are the subject of economics, a branch of social science. It aims to comprehend how people and civilizations distribute finite resources to meet their endless wants and requirements. In this essay, we'll look into four economics-related issues. Four Economic related issues Question 1: To figure out the maximum amount we should pay in this situation, here below is the formula to use: PV = CF / (1 + r)n Where PV is the present value, CF is the cash flow, r is the opportunity cost of using funds, and n is the number of periods. In this case, CF = $250,000, r = 8%, and n = 5. Therefore, the present value of the asset is: PV = $250,000 / (1 + 0.08)5 = $250,000 / 1.469 = $170,087.3 Therefore, the maximum amount that an individual should pay for the asset is $170,087.35 Question 2 answers: A.Suppose the supply function for product X is given by Qxs = −30 + 2Px − 4Pz. When Px= $600 and Pz=$60, the amount of product X produced is: 2 Qxs = -30 + 2($600) – 4($60) Qxs = 930 units. Therefore, when Px is $600 and Pz is $60, the amount of product X produced is 930 units. B. when Px = $80 and Pz = $60, we need to substitute these values in the supply function and solve for Qxs: Qxs = −30 + 2Px − 4Pz Qxs = −30 + 2($80) − 4($60) Qxs = −110 Therefore, when Px = $80 and Pz = $60, the amount of product X produced