Consider the production model of chapter 4. As we discussed in class, it is a general equilibrium model. Please discuss in no more than 6 lines i) what general equilibrium means? and, ii) why do you think is important?Differences in the productivity parameter (A) across countries turns out to be very important to explain cross-country differences un GDP per capita. However, they are more important if you consider the Solow model than if you consider the production model of Chapter 4. Why is that the case? Explain in no more than 5 lines providing economic intuition.SECTION 1You are asked to make comparisons of two pairs of countries. The first pair is the Latin American countries of Chile and Argentina; the second pair is France and Germany. You are given the following information: the average saving rate in Argentina is 13.4 percent, in Chile it is 21.3 percent, in France it is 22 percent, and in Germany, 20.3 percent. Assuming the countries are identical in every other way, which country would the Solow model predict to have the higher per capita real GDP between Chile and Argentina and; France and Germany? However, you go to the data and find out the real per capita GDP in each of the countries are $16,500 (Argentina), $21,548 (Chile), $31,446 (France), and $33,181 (Germany). Please interpret your results of part a) in light if the new information given to you.SECTION 2As discussed in class, the experience of countries like South Korea or Singapore can be considered as economic miracles. They were relatively poor and then after a period of very rapid economic growth they joined the group of rich countries. Use the Solow growth model with its diagrams by changing one of its parameters to describe such an experience of transiting from being poor to rich by growing fast. Please justify the choice of the parameter you choose to change by using your economic intuition and what we discussed in class about the economic reforms that took place on such coun-tries.Attach

This Professional Assignment (CLA2) requires a minimum of six (6) pages (excluding tables, graphs, appendices, title, and reference pages) APA formatted Word Document in response to the following questions. Your answers should be clear, well-organized, and specific. Provide a concise, cogent argument and include details to support your response. 1. What is a systematic liquidation of a venture? What are some of the advantages and disadvantages of a systematic liquidation?2. ACE Corp was formed five (5) years ago by the original founders and some venture capitalists (VC) with five million shares, three million held by the VCs priced at $2.50 per share and 2 million held by the founders priced at $0.50 per share. ACE estimates its free cash flows that will be available to the enterprise next year at $5,200,000. Since the venture is now in its maturity stage, ACE’s free cash flows are expected to continue to grow at a 6% annual compound growth rate in the future. A weighted average cost of capital (WACC) for the venture is estimated at 15%. Interest-bearing debt owed by ACE is $17.5 million. In addition, the venture also has surplus cash of $4 million. a. Based on the above information, estimate the current total value of ACE Corp. b. What would be the value of the ACE’s equity?c. How much of the value of ACE would belong to the VCs and how much to the founders? d. How much would be the per share value of ACE’s equity?e. What would be the percentage gain on VC’s investment f. What would be the percentage gain on founders’ investment ?g. What is the internal rate of return on the founders’ investment? h. What is the internal rate of return on the VC’s investment? 3. The GAMA firm is proposing to acquire the ACE Products venture described in item 2 above. GAMA estimates that ACE’s free cash flow for next year could be improved to $5.5 million because of synergistic benefits in the form of operating or distribution economies. The potential acquirer also believes that ACE’s perpetuity growth rate could be increased to 7 % annually. However, the riskiness of the cash flows would be increased causing the appropriate WACC to increase to 16 %. Interest-bearing debt owed by ACE is $17.5 million. In addition, the venture also has surplus cash of $4 million. ACE Products has five million shares of common stock outstanding.a. Determine ACE’s total value from the perspective of GAMA. What is ACE’s equity worth to GAMA in dollar amount and on a per share basis?b. Use the per share value of ACE from the previous problem (problem 2) above and determine the GAMA’s expected per share synergetic benefits from this merger.c. If one-half of the synergy derived benefits were allocated to ACE’s VCs and founders, what price per share would the merger take place.d. GAMA has thirty million shares of stock outstanding with a market capitalization value of $600 million. ● What is GAMA’s intrinsic value per share?

Case Study 1: Auctions and Dynamic PricingThe following video describes auctions as price discovery mechanisms:The Ideal Auction. Use the video on auctions and at least three academic or high-quality business publications (see acceptable types below) to answer the following questions in 5–7 pages. Other articles and resources can be found at the Strayer Library.There are many types of auctions, each with strengths and weakness at uncovering the real price or value of an item. Compare and contrast how each of the following uncovers value: English and Dutch auctions. Sealed-bid first-price auctions and Vickery auctions. Compare and contrast surge pricing and congestion pricing. Give an example of each currently in use. Auctions are widely used in finance, e-commerce, and in e-games. Identify three examples of auctions used in finance, e-commerce, and/or e-games. Explain the following in-depth: The need for an auction to uncover value in the product or service. How the type of auction used to uncover the value of the product or service is better at uncovering value than other types of auctions. Auctions are also widely used to generate revenue for not-for-profit organizations. What are the advantages or disadvantages of auctions as revenue generators for not-for-profit organizations? Suggest ways in which a for-profit company, such as the company for which you work or a company for which you aspire to work, can use auctions or dynamic pricing to better uncover value and increase revenue. Formatting RequirementsThis course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.Acceptable Types of PublicationsA high-quality, professional business publication is one that is primarily directed at reporting or analyzing the workings of business. Examples are the Wall Street Journal, Bloomberg, and Reuters. Avoid general news publications such as USA Today, the Washington Post, and the New York Times.Please do not rely on Wikipedia, Investopedia, or similar websites as references at any time in this course.