Q: 17-4 Your company has a customer who is shutting down a production line, and it is your…
A: Profit-maximization pricing implies setting prices so that total revenue is as large as possible…
Q: 12. What is the subgame-perfect outcome from a finitely repeated game? a. Iterated Elimination…
A: Nash equilibrium (NE) assists the players in achieving the best strategy in a non-cooperative…
Q: A subsidy is the opposite of a tax, but it has precisely the same impact on a market, namely, it…
A: "A subsidy is the opposite of tax" because it gives some incentive to the firm or individual in form…
Q: According to neuvoo (an online job search network), the average auto mechanic salary in Canada is…
A: The average compensation differential between working men and women is known as the gender pay gap…
Q: The following graph shows a monopoly. Which coordinate area represents the deadweight- loss…
A: A monopoly is a market structure where there is only one firm in the market for a good or service.…
Q: With unemployment low and the inflation rate near the target level, when the coronavirus crisis was…
A: The cost of borrowing money will normally decrease if the federal funds rate decreases. For greater…
Q: nflation and international trade Identify which statements are true and which ones are false. For…
A: The increase in general price level refers to the inflation rate. High inflation rate is worrisome…
Q: Is underdevelopment a domestic or internally induced phenomenon? Explain the implication of extreme…
A: Economic development initiatives are programmes, policies, or actions that attempt to improve a…
Q: 14) Calculate the real change in the income in $. B D 1 An iron mining company sells three grades of…
A: Real change income is calculated by evaluating the change in the income of a firm on a basis of the…
Q: Suppose the required reserve ratio is 10% and a bank receives a $10 million deposit into a checking…
A: Reserve are the part of deposit that is kept out of deposit by the bank. The formula of Multiplier…
Q: This is Engineering economics subject... Please Answer the following in your own words. 1.…
A: Engineers place a high priority on the study of engineering economics. This course explains why…
Q: 4. * Two companies each own property (and mineral rights) in an oil field. Each firm therefore has…
A: Nash Equilibrium is the point where Best response for both players intersect
Q: Consider a typical consumer whose preferences can be represented by a Constant Elasticity of…
A:
Q: 10. Questionable business practices according to antitrust agencies Complete the following table by…
A: Pricing: A merchant can increase profits by using pricing strategies to change the prices at which…
Q: Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per…
A: Introduction Accumulated value, reffered to as accumulated amount or cash value. Present value is…
Q: If a monopoly firm can price discriminate, it will charge a _______ price to consumers that have a…
A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…
Q: ssume the US market for loanable funds is in equilibrium. Describe how an increase in the federal…
A: Government experiences budget deficit when governmnet expenditure exceeds governmnet revenue.
Q: Should the USA support a global economy or a closed economy?
A: An open economy or a global economy is a type of economy that trades products, services and…
Q: The consumers in the economy buys only two general types of products: Apples, and Bananas. Price…
A: CPI is the consumer price index. It is calculated as :- CPI = (Cost of basket in current year ÷…
Q: The commercial banking system has excess reserves of $3,000. Then new loans of $30,000 are…
A: Reserve are the part of deposit that is kept out of deposit by the banks. Multiplier = 1/r Where r…
Q: Predatory pricing occurs when a firm intentionally prevents competition by pricing their product at?
A: Firms compete in the market to acquire the market share to earn profits. If the market share is high…
Q: The Money Supply:
A: Money supply with immediate cash in = Demand or checkable deposits + money market checking account +…
Q: Consider the following sets of investment projects. All projects have a 3-year investment life.…
A: Future value is calculated as F=CF1+in Where CF is the present value and n is the number of years…
Q: As the number of firms In an cligopoly becomes very lange, the price gets close to the perfiect…
A: Oligopoly is the market structure with few firms that are in intense competition with each other.…
Q: Wars of attrition arise in which of the following contexts? A. deficit reduction B. fiscal policy…
A: When two (or more) businesses compete against one another, each one losing money but expecting the…
Q: Billy is an economics student and can use a practice exam to test his knowledge. After one hour of…
A: The Law of diminishing marginal Utility communicates that negligible utility will in everyday…
Q: Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket,…
A: A tax is a payment made by citizens to the government in exchange for the services it offers.A tax…
Q: The tables (below) show the willingness to pay by three (competitive) consumers for additional units…
A: An market is a collection of systems, institutions, processes, social relationships, and…
Q: Possibility A B C D Entertainment (E) (units) 90 60 30 0 Consider the above PPF. What is the…
A: In economics, the opportunity cost is the worth of what you have to give up in order to choose…
Q: owns а тоба = 8 + q + 2q².
A: Profit is the reward for bearing the risk. The difference between the Total Revenue and the Total…
Q: Assume a fixed MC across the two firms MCA = MCB = 4. Assume further that they both face a mark…
A: Firms under imperfect competition have varying degrees of control over the prices of the products…
Q: Producer surplus is calculated: Question 15 options: By taking the consumers' willingness to…
A: The difference between the consumer's actual price for the good and the utmost price they would be…
Q: IS FIGURE 1. IS FIGURE 2. LM LM
A: Figure 1. Shows the IS curve and the LM curve. The IS curve depicts the saving-investment curve…
Q: 4. What is the opportunity cost of producing one unit of Wheat in the U.S? 5. Which country should…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: 7. A well-known internet company (WKIC) quietly launches an internet service in which people can…
A: perfectly competitive market where firm sells identical products and firms are price taker.
Q: After many years of budget surpluses, why did the government drastically increase spending in 2009?
A: in 2008 and 2009 global economy was experiencing what we called great recession it started since…
Q: What is Efficiency Wage? What are are some of the advantages and disadvantages of Efficiency wages?…
A: Effectiveness wages are above-market wages paid by bosses to work on the efficiency of their labor…
Q: what our Nation can do to help decrease the number of poor and homeless individuals and families?
A: A person or group is said to be in a condition or situation of poverty when they do not have the…
Q: Lightweight personal locator beacons are now available to hikers that make it easier for the Forest…
A: Cost is the total of the factor payments made for the use of land and other assets during the…
Q: 17-3. The residential division of Prism’s high speed Internet service uses one advertising agency…
A: The difference-in-differences method is a quasi-experimental methodology that compares the changes…
Q: If the Central Bank of Vinicius wants to reduce the inflation rate they could: a) sell public debt,…
A: public debt, obligations of governments, especially those confirmed by protections, to pay specific…
Q: In the long run, the total cost function will be: Selected answer will be automatically saved. For…
A: Long run is the time period where no inputs are fixed instead all inputs are variable. In short run…
Q: Agroscience Company, Cypress, TX manufactures a certain product with estimated variable costs, per…
A: The total cost of a firm is given by: Total Cost = Total Fixed Cost + Total Variable Cost Total…
Q: what were Lionel Robbin's two examples of monetary economics that were inappropriate when he…
A: Lionel Robbin explained the theory of scarcity of choice. He explained that the resources are scarce…
Q: If the aggregate demand (AD) curve shifts from AD₁ to AD2, the resulting equilibrium price and…
A: The situation shows that shift in Aggregate Demand above potential output LRAS, which result in…
Q: You sell bicycle theft insurance. If bicycle owners do not know whether they are high or low risk…
A: Individuals purchase insurance to cover themselves against the potential risk of loss. There are…
Q: define the terms -Infaltion -depression -peak
A: Business cycles are cyclical changes in an economy's commercial activity. Business cycles are…
Q: Suppose the fed were to sell off $500 worth of used office furniture to private citizens. Explain…
A: According to the Federal Reserve, bank reserves are the sum of money that a bank is obligated to…
Q: To produce one more yard of X , you need 1/MPLCx hours of labor. true or false
A: The marginal product of labor refers to the additional amount of output produced with the employment…
Q: Short Answer 1 Fill in the table below. Number of firms Type of product Influence over price…
A: Perfect competition Monopolistic competition Oligopoly Monopoly Number of firms Many…
The Annual Worth (AW) value is comprised of two components. These components are:
CR + A
AW + S
P + AW
CR + F
The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operating cost for power, site maintenance, etc. is $13,000. If the salvage value of the pumps, blowers, and
$−24,900
$−25,518
$−13,140
$−26,140
Step by step
Solved in 2 steps
- Maxx International is considering one of two forklifts trucks for its assembly plant. Truck A costs $15,000 and requires $3,000 monthly in operating expenses. It will have a salvage value of $5,000 at the end of its three-year service life. Tuck B costs $20,000 but requires only $2,000 annually in operating expenses; its service life is 4 years; at which time, its expected salvage value will be $8,000. The MARR is 10%. Assuming that the trucks are needed for 12 years and that no significant changes are expected in the future price and functional capacity each truck, select the most economical truck based on AE analysis. Fill in the blanks: Costs of ownership for truck A Operating costs for truck A ........................................ Total annual costs for truck A ....................Capital recovery (CR) is the equivalent annual amount that an asset, process, or system must earn each year to just recover the first cost and a stated rate of return over its expected life. Salvage value is considered when calculating CR. True FalseWolfpack Inc., a textile manufacturing company, is considering opening a production and shipping facility to keep up with demand for its pillows. The facility is expected to require an initial investment of $190,000 and will have a $36,000 salvage value after 5 years. Net annual revenue is estimated to be $100,000 while annual maintenance costs are estimated to be X% of the annual revenue. Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and annual revenues. Use a MARR of 4% per year and a 5 years study period
- eBook Net Present Value Method—Annuity Take a Load Off Hotels is considering the construction of a new hotel for $12,000,000. The expected life of the hotel is 6 years with no residual value. The hotel is expected to earn revenues of $12,400,000 per year. Total expenses, including straight-line depreciation, are expected to be $10,000,000 per year. Take a Load Off's management has set a minimum acceptable rate of return of 12%. a. Determine the equal annual net cash flows from operating the hotel.$fill in the blank 1 b. Calculate the net present value of the new hotel, using the present value factor of an annuity of $1 table below. If required, round to the nearest dollar. If the net present value is negative, enter the amount using a minus sign. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791…Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of $25 each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 3 million per year. The old chips cost $6 each to manufacture, and the new ones will cost $8 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? Note: Enter your answer in millions.The Briggs and Stratton Commercial Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled “Always Insta-Start” does indeed work for every engine produced. (a) Compare the annual worth values of the two systems at MARR = 10% per year. Select the better system. (b) Determine the salvage value for the Push System that will make the company indifferent between the two systems. Pull System Push System Equipment first cost, $ −1,500,000 −2,250,000 AOC, $ per year −700,000 −600,000 Salvage value, $ 100,000 50,000 Estimated life, years 8 8
- A new manufacturing plant costs $530,000 to build. O&M are estimated to be $50,000 per year, and a salvage value of 25 percent of the initial cost is expected. The units the plant produces are sold for $60 each. Sales and production are designed to run 365 days per year. The planning horizon is 10 years. MARR is 10%. Determine the number of units that must be sold annually to achieve breakeven.You are considering making an $80,000 investment in a process improvement project. Revenues are expected to grow from $50,000 in 1 year by $30,000 each year for the next four years ($50,000 first Year, $80,000 second year, $110,000 third year and so forth) while cost are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of five years. at MARR of 11%, What is the NFW of the investment?An electric automobile can be purchased for $25,000. The automobile is estimated to have a life of 12 years with annual mileage of20,000 miles. Every three years, a new set of batteries will have to be purchased at a cost of $3,000. The $3,000 cost of the batteries is a net value with the old batteries traded in for the new ones. Annual maintenance of the vehicle is estimated to cost $700. The cost of recharging the batteries is estimated at $0.015 per mile. The salvage value of the batteries and the vehicle at the end of 12 years is estimated at $2,000. Consider the MARR to be 7%. What is the cost per mile to own and operate this vehicle according to these estimates?
- Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional cost of P1500, 000 at the end of every 10 yrs. The annual operating costs will be P150, 000 at the end of every year for the first 5 years and P180, 000 thereafter. In addition, there is expected to be recurring major rework cost of P400, 000 every 13 yrs. Assume i =18% a.Php 4,467,564.367 b.Php 5,673.467.567 c.Php 5,534,673.123 d.Php 4,813,109.563Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.50 per year per foot of pipe. A 1-inch thick insulated covering will eliminate 89% of the loss and will cost $0.40 per foot. A 2-inch thick insulated covering will eliminate 92% of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 250,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Determine which insulation (if any) should be purchased using annual worth analysis.Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $8,000,000; Value Lodges estimates furnishings for the motel will cost an additional $700,000 and will require replacement every 5 years. Annual operating and maintenance costs for the motel are estimated to be $800,000. The average rental rate for a unit is anticipated to be $40/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900,000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5-year replacement interval. Assuming average daily occupancy percentages of 50%, 60%, 70%, and 80% for years 1 through 4, respectively, and 90% for the 5th through 15th years, a MARR of 12%/year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.…
