Consider the accompanying demand schedule for diamonds. The marginal cost of producing diamonds is constant at $100. There is no fixed cost.

Price of Demand Quantity of diamonds demanded
$500 0
400 1
300 2
200 3
100 4
0 5

a. If De Beers charges $300 for a diamond, calculate total consumer surplus by summing individual consumer surpluses. How large is producer surplus?
b. What is the perfectly competitive price? What quantity will be sold in this perfectly competitive market?
c. At the competitive price and quantity. how large is total consumer surplus? How large is producer surplus?
d. Compare your answer to part c to your answer to part a. How large is the deadweight loss associated with monopoly in this case?

The selling price of houses would be most likely to decrease if there were first a decrease in which of the following? a. new-housing construction. b. mortgage interest rates. c. the unemployment rate. d. construction workers' wages. 2b2t

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)