Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Reflection paper/Reflection essay
27/08/2022
Dry milling
$0.53
$0.40
$0.10
$1.23
50
150
Task 1: Draw the marginal cost curve and the average total cost curve of a wet milling ethanol plant. Assume that the overhead cost is not recoverable if the plant shuts down temporarily.
Task 2: Draw the marginal cost curve and the average total cost curve of a dry milling ethanol plant.
Task 3: ADM’s Peoria plant is a wet-milling plant. Suppose the price of ethanol were $1.02 per gallon. Would ADM wish to temporarily suspend operations (shut down) at the Peoria plant? What is the minimum ethanol price at which operating the Peoria plant is optimal for ADM?
Task 4: Draw the current short-run industry supply curve for ethanol.
Task 5: Verify that the current equilibrium price of $1.53 is consistent with the short- run supply curve you derived above, combined with the demand function ! = 46.1 − 20!, where Q is billions of gallons per year.
Task 6: Suppose the demand for ethanol changes to ! = 23.05 − 10!. What do you predict will be the new price in the short run? How much ethanol will be produced in the new short-run equilibrium? How much will be produced by dry-milling plants? Wet-milling plants?
1 Actual plant capacities and costs vary more than is shown here.
2
2. AbbVie Pharmaceuticals (headquartered in Lake Forest, IL) has commenced a $10 million R&D project to develop a new drug to treat a rare disease. So far, it has spent $6 million of the $10 million, and preliminary results are positive. If the additional $4 million is invested, the drug will certainly be completed and is expected to generate profit of $18 million in present value for AbbVie. Meanwhile, a research biologist at Illinois Tech has independently developed a treatment for the same disease. The scientist has offered to sell her invention to AbbVie for $2 million. Her drug would be just as effective as AbbVie’s drug, and would also generate profit of $18 million in present value.
d. Suppose that Merck has also expressed interest in the biologist’s invention. If Merck buys the drug, there is a 50% chance that it will beat AbbVie’s drug to mar
Show more
Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more