2. The Production of microchips is given by the Cobb-Douglas function 0.3 0.7 P K L  4000 . K represents capital expenditures(in $ millions) and L represents labor costs(in 1000-hour units). Current costs are $10 million in capital costs and 30,000-hours in labor. a) Find the derivative with respect to time, t (in months), using Implicit techniques. 9pts b) If the company is upgrading machinery, increasing capital expenditures $1.8million per month, allowing them to decrease labor costs by 2,000-hours per month, what is the rate of change in production? 8pts c) If production is to be kept constant at the level 0.3 0.7 P(10,30) 4000 10 30 86307     , what would be the expected change in labor-h

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) wacc %

What are two benefits of consumer programs