From the end of chapter 6, consider the two capacity options for arktec manufacturing from problem 2 and the three possible demand scenarios from problem 4. first, draw the decision tree for arktec manufacturing. when drawing your tree, assume that managers must select a capacity option beforethey know what the demand level will actually be. then, calculate the expected value for each decision branch. which option would you prefer and why? respond to at least two of your classmates’ postings.

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it. g