Suppose a firm is considering to buy a machine today at $25,000. The use of this machine in the production process of a commodity causes firm`s net incomes to rise by $ 15,000 in each of the next two years. Assume the rate of interest is 10% and machine has no scrap value. Is it desirable for the firm to purchase the machine? Explain your answer.
Q: Describe the ways policymakers can respond to the inefficiencies caused by monopolies. List a…
A: Monopoly refers to a market arrangement in which there is only one seller offering a single product.…
Q: truck production purchased a truck of $85000. the estimated life span is 5years with salvage vlaue…
A: Given: The cost of a truck is = $85,000 Estimated life = 5 years Salvage value is = $10,000 To Find:…
Q: A company paid $200,000 eight years ago for a specialized machine that has no salvage value and is…
A: Marginal cost is the cost that the producer spends to fabricate one extra unit of the good. The…
Q: Subject: OM | International Business and Trade Question: 3.How do you think the transition to a…
A: The government deficit is the difference between government expenditure and government revenue.…
Q: Gary likes to gamble. Donna offers to bet him $54 on the outcome of a boat race. If Gary's boat…
A: The expected utility is determined by taking the weighted normal of all potential results in…
Q: You read the following headline in the newspaper: "Following an expansion of military efforts, the…
A: "In macro-economics there are two kinds of policies fiscal policy and monetary policy. Fiscal policy…
Q: Economics Consider the following in normal form: B S B 4,2 0,0 S 0,0 2,4 a. Is there a Nash…
A:
Q: The slope of the IS curve is flatter when... O a. the transfer payment multiplier is large O b. the…
A: The IS curve explains the nature of the goods market and it describes the relationship between the…
Q: MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as…
A: The firm exists in the market to maximize the profit. The short run objectives might be different…
Q: Assume that in the competitive market for pizzas, the demand function is linear. Suppose you know…
A: Equilibrium occurs at the intersection point of the demand and supply curve. Consumer surplus is…
Q: valuate the following statement: "When it comes to public goods, individuals do not reveal their…
A: 'Public goods' are goods and services that are available to everyone in a society.In nature, public…
Q: The supply and demand curves for bananas are as follows: QD = 3,750 - 725P QS = 920 +…
A: Price floor or support price is the minimum price which should be paid by the consumers. Support…
Q: - A monopolist has variable costs of VC = q² and faces a demand curve of P = 24- q, where P is price…
A: Price discrimination means charging different price of same goods from different consumer. There…
Q: In which of the following cases would an excise tax be borne mostly by sellers? a. A tax on…
A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.
Q: In a given year , there are 10 million unemployed workers and 120 million employed workers in an…
A:
Q: Question 14 Questions 14-18 refer to Figure 5-1 below. Suppose a firm operating in a perfectly…
A: Here, the given graph shows the cost functions of a perfectly competitive market with current price…
Q: The given matrices are payoffs for two-person, zero sum games. Decide whether the games are strictly…
A: -3 -5 2 -1
Q: Apparently, Keynes assumed stable prices regardless of the level of government money creation. Was…
A: When talking about Keynesian economics, it can be said that this theory is primarily applicable…
Q: at is the gain or loss on purchasing power for 2021? (if LOSS, put a negative (-) sign before the…
A:
Q: Draw the initial equilibrium for the domestic economy in the IS-LM-IP diagram. Then, draw the new…
A:
Q: (a) If we allow for the possibility of satiation, consumer's budget constraint takes the form px pw.…
A: Walras Law is defined as a general equilibrium theory which states that despite the prices are…
Q: The oilsands companies will tend to efficiently allocate resources to the production of…
A: Oil sands, also known as tar sands, are a type of sand and rock that contains crude bitumen, a…
Q: Briefly define the current account, capital/financial account and official settlements account of a…
A: Balance of payment is the accounting records of all monetary transaction occured between nations .…
Q: (a) Examine the view that it is possible to escape from the "impossibility" result of Arrow by…
A: Arrow's Impossibility Theorem is defined as a paradox of social choice which portrays that it is…
Q: Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a decrease in consumer…
A: Imports lead to a surge of assets from the country since import exchanges include installments to…
Q: Suppose an economy is in a deep recession with high unemployment and low output. b. If the central…
A: As the quantity of jobless laborers ascends while interest and result decline further subsequently,…
Q: (b) Use the IS-LM model to illustrate graphically the final impact of the reduction in government…
A: The IS-LM model portrays how aggregate business sectors for genuine goods and financial business…
Q: sing the demand and supply curves for bonds, explain the effect of the following on the interest…
A: Demand and Supply (AD) (AS) Aggregate demand in an economy refers to the total demand for the goods…
Q: Costs ($) 800 TVC 500 450 300 0 1 2 3 4 5 6 7 8 9 10 11 12 Units of output 1. Refer to the figure,…
A: Total cost has two components one is varaiable and another one is fixed.
Q: Exercise: Show that it is better to be in collusion, than in cournot, than in competition.
A: Main features of collusion and competition under Cournot: Collusion refers to when two firms in the…
Q: Q10 needed Q8 pic is just for reference Question 10 Refer to Table 5-1 and the firm in Question 8,…
A: In perfect competition, eqm Q(quantity) is found by the intersection of MC(marginal cost) and…
Q: why is the fixed cost 10?
A: Fixed cost doesn't change with the change in the number of output.
Q: Explain the concept of the Expected Utility Hypothesis (EUH) and state all relevant assumptions. Use…
A: When there is uncertainty about the result, this theory estimates the likely utility of an action.…
Q: Elasticity of demand solve This question on Almarai company solve all as they related and use Excel…
A: Price ELASTICITY of demand refers to the percentage change in quantity demanded due to the…
Q: Suppose that the government is going to auction off permits equal to one third of total emissions in…
A: The additional cost incurred for the production of an additional unit is known as the marginal cost.…
Q: Distinguish between commodity money and fiat money
A: "Money act as a medium of exchange, store of value, a unit of account and a standard of deferred…
Q: Let the slope of MR curve of a monopolist be -1/2. MC=5. After a tax at the rate t=5 per unit of…
A: Given The slope of the MR curve = -1/2 MC=5 Let the marginal curve is MR =a -0.5Q ... (1)
Q: Jill invested $1,000 each year for five years in a local company and sold her interest after five…
A: Let i% be ROR of investment, then 1000*(F/A,i%,5) = 8000 (F/A,i%,5) = 8000 / 1000 = 8
Q: Refer to the accompanying table. Corey's opportunity cost of making of a pizza is delivering Pizzas…
A: Opportunity cost refers to the next best alternative forgone.
Q: Why do most demand curves demonstrate an inverse relationship between price and quantity?
A: Demand for a good is defined as the amount of that good that consumers are willing and able to buy…
Q: Suppose, the GDP of a country is 50 million, net factor income from abroad is 20 million and…
A: Given information: GDP: 60 million Net factor income from abroad: 20 million Depreciation: 10…
Q: 6. Which statement is true? L. A negative productivity shock to all goods and services can be…
A: So in simple and general words we can say that the Production possibility frontier is actually known…
Q: Describe the arguments for and against society responsibility
A: Society Responsibility or social responsibility refers to the rationality of any individual or…
Q: What aspect of Aggregate Demand results in monetary gain from "factors of production" to households?…
A: The term that depicts quantities that are being demanded by individuals at various levels of price…
Q: One of the key reasons for explaining the case for efficient allocation of unregulated resources…
A: When talking about efficient allocation, it can be said that producers and consumers will interact…
Q: How has the official unemployment rate been criticized for overestimating and underestimating…
A: The official unemployment statistic is frequently chastised for underreporting and exaggerating the…
Q: How utility is related to form utility?
A: Utility and Form utility are related as Utility is mainly of four kinds.
Q: In competitive markets, 3 .Group of answer choices 1. market forces of demand and supply determine…
A: A perfectly competitive firm is a price taker, which means the price is set by the market forces,…
Q: what is the 'bottom of the pyramid' concept? a- focus on alleviating poverty by raising the real…
A: The answer is - c-focus on social enterprise or cooperatives to maximise the ability of the poorest…
Q: A monopolist has variable costs of VC = q² and no fixed costs and faces a demand curve of P = 24-q,…
A: The demand curve shows the inverse relationship between the price and quantity demanded. The demand…
Step by step
Solved in 2 steps with 2 images
- Imagine you are running a business that processes horticultural product, and is currently producing 40,000 tonnes of product per year. The average cost of producing 40,000 tonnes is $600 per tonne. A buyer for a large supermarket chain comes along and offers to buy an extra 10,000 tonnes of your product at a price of $300 per tonne. This price is much less than the average cost of production for the current annual output. With the current production system of the business, the marginal cost per tonne of producing an extra tonne is $200/ton. 1. Would you accept or reject this offer, and why? 2. What principles underlie your reasoning in deciding whether to accept or reject this offer?A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $300 per day. Assume that the additional vehicle would be capable of delivering 1,750 packages per day and that each package that is delivered brings in $0.30 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. Instructions: Enter your answers rounded to 2 decimal places. a. What is the MRP? What is the MRC? MRP = $ MRC = $ %3D Should the firm add this delivery vehicle: Yes b. Now suppose that the cost of renting a vehicle doubles to $600 per day. What are the MRP and MRC? MRP = $ MRC = Should the firm add a delivery vehicle under these circumstances: No c. Next suppose that the cost of renting a vehicle falls back down to $300 per day but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? MRP = $ MRC = $A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $350 per day. Assume that the additional vehicle would be capable of delivering 1,750 packages per day and that each package that is delivered brings in $0.35 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. Instructions: Enter your answers rounded to 2 decimal places. a. What is the MRP? What is the MRC? MRP = $ %3| MRC = $ Should the firm add this delivery vehicle: (Click to select) v b. Now suppose that the cost of renting a vehicle doubles to $700 per day. What are the MRP and MRC? MRP = $ MRC = $ Should the firm add a delivery vehicle under these circumstances: (Click to select) v c. Next suppose that the cost of renting a vehicle falls back down to $350 per day but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? MRP = $ MRC = $
- Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food cans per day, and can sell each can at $2.00/can regardless of how much is produced. Your firm currently employs 20 workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. a. (3) Calculate your company’s current daily profit. You’re considering whether to hire additional workers to produce additional cans. Each worker would be paid $15/hr. and material costs remain constant at $1.00/can. You estimate the 21st employee would produce an additional 200 cans per day, and the number of additional cans from each additional worker would be decreasing by 40 (a 22nd employee could produce an additional 160 cans per day, a 23rd employee could produce an additional…A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $250 per day. Assume that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in $0.25 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. Instructions: Enter your answers rounded to 2 decimal places. a. What is the MRP? What is the MRC? MRP = $ MRC = $ Should the firm add this delivery vehicle: (Click to select) ♥ b. Now suppose that the cost of renting a vehicle doubles to $500 per day. What are the MRP and MRC? MRP = $ MRC = $ Should the firm add a delivery vehicle under these circumstances: (Click to select) ♥ c. Next suppose that the cost of renting a vehicle falls back down to $250 per day but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? MRP = $ MRC = $…The yearly demand for a widget is 5000 units. The cost of ordering is $100 per order and the cost of holding is $4 per unit per year. The widget was ordered in batches of 1000 units and the firm changes the policy to order as per the economic order quantity. What is the saving in total inventory related costs because of the change in the ordering policy? (Inventory related costs include holding and ordering costs)
- Suppose a firm expects that a $40 million expenditure on R&D in the current year will result in a new product that can be sold next year. Selling that product next year will increase the firm's revenue next year by $60 million and its costs next year by $54 million. Instructions: Enter your answer as a whole number. a. What is the expected rate of return on this R&D expenditure? percentA manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this bullding is being pald for in Installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Using this information, answer the follwoing questions. 1. 8,000 2. $30,000 3. 4,800 How many units per year must be sold for the company to breakeven? 4. 5,019 If 10,000 units per year are sold, what is the annual profit? 5. 6,667 Sheridan 6. $50,000 7. $80,000 8. $100,000Suppose that the price of a barrel of oil is $80 and interest rates remain at 8%. If a new technology is implemented in one of the wells and it costs $3,000,000. Calculated the estimated "profit" from outfitting one of our wells with this new technology.
- A firm faces the following costs: total cost of capital = $8,000; price paid for labor = $20 per labor unit; and price paid for raw materials = $6 per raw-material unit. Initially, the firm can produce 2,000 units of output by combining its fixed capital with 250 units of labor and 400 units of raw materials. After the firm improves its production process, it can produce 5,000 units of output by combining its fixed capital with 150 units of labor and 300 units of raw materials. How will the firm's total costs change as a result of the improved production process? Instructions: Enter your answers as a whole number. Total cost changes from $ ___ using the original process to $ ___ using the improved process. plz answer correct asap dont answer by pen peparQuestion 3 Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she is ordering 230. Daily demand for these calculators is 5. The cost to re-order this item is estimated at $44, while the annual inventory holding cost is 22%. Orders are received two working days after an order is placed. The office operates 52 weeks per year, 5 days per week. What is the duration of a cycle (in days) associated with the EOQ? Greater than or equal to 6 and less than or equal to 10 Greater than or equal to 58 and less than or equal to 68 Greater than or equal to .001 and less than or equal to 3 Greater than or equal to 18 and less than or equal to 28 4 pts < Previous Next VIQUESTION 7 A firm's production function given by Q=2KL where K, L and Q denote capital, labor, and output, respectively. The firm wants to produce an output of 32 units at a minimum cost. The wages and rent are $2. Show the solution graphically and find the value of capital and labor that the firm will use at the solution (Using symmetry, you can easily do this). Attach File Browse Local Files Browse Content Collection