Kjonson inc's managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. this past year, the firm earned an operating income return on investment of 13 percent, compared to an industry norm of 12percent. it has been estimated that the firm's investors have an opportunity cost on their funds of 16 percent, which is the same as the firm's overall cost of capital. the firm's total assets for the year were $ 250 million. compute the amount of economic value created or destroyed by the firm. how does your finding support or fail to support what you would conclude using ratio analysis to evaluate the firm's performance? assume that the firm has no debt. what is the amount of economic value created or destroyed by the firm? enter a positive number for eva created or a negative number for eva destroyed.

What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?

Why is efficiency an important economic goal?