Refer to the demand schedule below. Use the demand schedule to calculate total revenue and marginal revenue at each quantity. Suppose the marginal cost of successive units of output was zero. What output would the profit-seeking firm produce? (Assume the firm can only produce whole units.). Broadcast News Writing, Reporting, and Producing Frank Barnas, Ted White download Z-Library. Download books for free.

A Publisher Faces The Following Demand Schedule Slader
A Publisher Faces The Following Demand Schedule

Operations Management: Sustainability and Supply Chain Management, Global Edition Heizer, Jay;Render, Barry;Munson, Chuck download Z-Library. Download books for free. Handbook of computational intelligence in manufacturing and production management Dipak Laha, Dipak Laha, Purnendu Mandal download Z-Library. Download books for free.

Today I will weave together three seemingly unrelated stories to make a point about a trend I think is often overlooked in the media. The first quarter earnings release of Tesla revealed the company sold $272 million worth of bitcoin holdings. Musk had done so to test the market’s liquidity, said his CEO, Elon Musk.

A Publisher Faces The Following Demand Schedule Slader

First, Tesla’s Q1 earnings release revealed that the company sold $272 million worth of its bitcoin holdings in the first quarter. According to its CEO, Elon Musk, it did so to test the market’s liquidity. Lastly, U.S. Federal Reserve Chairman Jerome Powell spoke about the macroeconomic environment, holding firm to the expectation of 2% inflation over the next few years.How do these three stories relate to one another?

Second, crypto lender Genesis Trading (a subsidiary of DCG, which is also the parent of CoinDesk) published its Q1 2021 report, which showed that the amount of loans outstanding broke through $9 billion, an increase of 136% from the previous quarter.

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Third, U.S. Federal Reserve Chairman Jerome Powell spoke about the macroeconomic environment, holding firm to the expectation of an average of 2% inflation over the next few years.

What do these three stories have to do with one another? The answer lies in looking through the growing use of bitcoin as a reserve asset on corporate balance sheets to why companies want to do so today, and why they are likely to want to do so in years to come.

In February, the company announced the purchase of a $1.5 billion bitcoin.s

Before we bring in this week’s narratives, let’s refresh the balance sheet asset story.

Companies investing in bitcoin as a reserve asset have usually cited value protection as the main reason. Bitcoin will hold its purchasing power against the inevitable debasement of fiat, the argument goes. Since corporate treasury’s priority is ensuring the business has the funds it needs for operations and strategic investment, today as well as in the future, some advocates argue that bitcoin is an ideal treasury asset, even though the volatility is a concern.

With Tesla’s move, other companies will be reassured that liquidity risk need not be a major concern. And the $101 million contribution to the bottom line also sends a powerful message. MicroStrategy kicked this off last August by putting all of its corporate treasury into bitcoin; the firm has continually added to its holdings, even raising capital to do so. In February, it held an event to educate other companies on the advantages and logistics that was reportedly attended by over 8,000 interested parties. Other firms making bitcoin reserve allocations include Square, Aker and Meitu, and this week South Korean-Japanese video game publisher Nexon revealed a $100 million bitcoin purchase (equal to approximately 2% of its cash and cash equivalents).

The company doesn’t have to go that far – even a modest allocation to cryptocurrency can continue to value core business while providing a buffer when profits falter.Tap: Genesis’ loan book saw USD and stablecoin loans more than double over the quarter. At present, the persistent basis trade opportunities in the bitcoin futures market mainly fuel demand for this type of loan. The company did not disappoint: in February, it announced a $1.5 billion bitcoin purchase. Its Q1 2021 earnings released this week showed that the company sold approximately 10% of its holdings for $272 million. Musk explained on Twitter that this was to “test the market’s liquidity.”

Investors may have initial concerns about the long-term value of cash and cash equivalents. An additional boost is likely to come from the relatively easy access to capital and equity products that are not tied to the economic cycle.Inflation expectationsIf Powell says something upbeat about inflation later, that'll continue. With inflation running consistently below the target rate of 2%, Powell recognized that it would be permissible to keep inflation above that level for some time. For instance, market expectations for inflation broke through 2.4% for the first time in over eight years. This is alarming mainly because of the likelihood that prices will fall even more than the market anticipates.

As a result, corporate treasurers are likely to be scrambling to find ways to protect assets from what MicroStrategy CEO Michael Saylor calls the 'melting ice cube' effect if inflation sticks above 2% for several years. With Powell’s confirmation that quantitative easing will continue for the foreseeable future, further debasement fears could be heightened. These trends are more likely to encourage treasurers to place at least a portion of their corporate reserves into bitcoin. The deeper takeaway is bitcoin's potential for use as collateral is just getting started. The Genesis report exemplifies this growth as well. It's not clear exactly how much bitcoin constitutes that collateral, but we can assume that it's the bulk. Companies don’t have to go that far – with even a modest allocation to bitcoin, they can maintain their core business but put in place a potential buffer when earnings look weak.

According to my colleague Brady Dale, the market cap of decentralized finance tokens has reached an all-time high of $120 billion; this represents lending and other financial applications.

Now, on to Genesis’ loan book, which saw USD and stablecoin loans more than double over the quarter. Demand for this type of loan is for now fueled mainly by the persistent basis trade opportunity in the bitcoin futures market. Going forward, it’s likely to be powered by a growing understanding of the efficiency of bitcoin as collateral, and the increasing amount of bitcoin ready to be used as collateral.

However, bitcoin could start to be seen as an intriguing collateral alternative for overnight loans to corporations that operate in multiple currencies, one that will also boost earnings when necessary.

Moreover, lenders could be drawn in by the bearer asset nature of the collateral in addition to its higher yield. Also, crypto investors aspire to hold an asset that won’t be devalued by an expanding monetary supply and mounting inflation. This is already being begun by the crypto industry’s main lending service.

We might even see decentralized lending services start to offer repo-like facilities. Banks, traditionally key participants in repo markets, are already becoming involved in crypto assets. Crypto assets however bring new types of risk to a fragile equation, and the notion of bitcoin as collateral has many hurdles to overcome before it can make a meaningful difference in today's financial ecosystem.

What U.S. Federal Reserve Chairman If even JPMorgan is now embracing crypto, the narrative goes, then surely institutional investors will be able to buy in en masse. The truth is much harder to make out. These funds are limited to private wealth clients who face fewer requirements than pension funds and insurance companies. It will broaden participation, but it does not get bitcoin 'mainstream.' By “actively managed,” I assume that they will also pursue derivative and cash allocation strategies in an effort to beat the bitcoin market.