Use the following information in answering questions 1 - 9. assume persons of type 1 value quality level z and the product itself such that the inverse demand for the product is given by p1 = 10 - q1 + 2z. similarly, for a person of type 2 the inverse demand for the product is given by p2 = 24 - 2q2 + 6z. the ac and mc of producing the product with quality z is mc = ac= 2 + 4z. assume that z can be either equal to 0 or 1

5. the profit maximizing quantity to sell to a person of type 2 when z=1 is
a. 4
b. 3
c. 6
d. 2
e. 5

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

The net present value method (a) is consistent with the goal of shareholder wealth maximization (b) recognizes the time value of money (c) uses all of a project's cash flows (d) all of the above

Compute the value of a v [ 0.5 , 1 ] . av[0.5,1]. what does this value measure geometrically? what does this value measure physically? in particular, what are the units on a v [ 0.5 , 1 ] ?