Y=10.K0.5 L0.5 K starts at 400, Lat 50, Investment = 0.10Y, Depreciation = 0.05K by how much will the stock of capital increase or decrease this year? Approximately
Q: given this utility function 95x10.3x20.2x30.25 first the first, second and cross order patial…
A: Utility function: U = 95x10.3x20.2x30.25 x1=24 x2=15 x3=5
Q: e first row of the following table. echanism timization Short Run Quantity Price (Subscriptions)…
A: Note: (i) Profit is maximized at intersection of MR & MC bends. (ii) Profit = Output * (Price -…
Q: 3. Supply and Demand Shifts Read the article at the end of this exam entitled “Gen Z Isn't That Into…
A: Here, the given paragraph explains the market condition of restaurants. It can be seen that there is…
Q: 25 of 100 Refer to Figure 7. Potential output is shown as curve Price Level, CPI P2 P1 C Figure 7 D…
A: Potential output is the maximum output a firm can produce in the long run.
Q: In 2050, the government has collected $9,409 billion in revenues from taxes but has spent $10,985…
A: When revenue surpasses spending, there is a budget surplus. Since people have "savings" rather than…
Q: = 42. Suppose the parameters of the Romer model take the following values: A, 10, 7= 0.01, ₺= 1/500,…
A: per capita income is a method by which we calculate the income earned by per person in the country…
Q: What you understand by Business Cycles.
A: Economics refers to the social science that studies the production, distribution, and consumption of…
Q: Which of the following is not true for a competitive market? Group of answer choices Firms can earn…
A: Answer to the question is as follows:
Q: 34 of 100 The idea that new industries in developing countries must be protected is known as…
A: In developing countries, there are new industries which are not stable enough to compete with more…
Q: Which of the following are included in this year’s GDP? Explain your answer in each Rent received on…
A: GDP: GDP or Gross Domestic Product computes the health of an economy. A country with greater GDP per…
Q: Explanation it correctly Q)Assume that some people who receive bank loans do not deposit the full…
A: The highest amount of money a bank may generate for each unit of money it has in reserves is known…
Q: Use the concept of an economy-wide production possibilities to explain full employment output and…
A: In an economy the production possibility curve is used to determine the potential level of output…
Q: 2 Inflation & unemployment :- Inflation 3 2.5 2 + 1.5 + 1 0.5 b 2 (2016) (2018) ч Phillips Curve *…
A: A. W. Phillips created the Phillips curve, an economic theory that claims there is a consistent,…
Q: Why does an increase in the labor force cause the Market Productivity of Capital to increase?
A: Marketing productivity is a measure of the profit responsiveness by segment to different levels of…
Q: Which of the following situations illustrate the problem of unmeasured quality change in the…
A: The measure that depicts the change in consumer prices based on a basket of services and goods over…
Q: Using the value marginal product concept, what do you expect if the price of the product sold falls?…
A: Marginal Product The marginal product of an input is the additional output that results from adding…
Q: In a perfectly competitive market, each firm has a long-run total cost given by LTC = 100Q - 10Q² +…
A: In a long-term equilibrium with perfect competition, the product's price equals the firm's minimum…
Q: 29. Saving requires interest rates to be sufficiently high to prevent free riders. savers to be paid…
A: Saving refers to the portion of current income for future use or the flow of resources accumulated…
Q: Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and…
A: Demand and Supply Demand is the amount of a commodity that consumers are willing to purchase at…
Q: e. judge. 6. Assume a perfogly competitive firm incurs a total cost of $10.000, marginal cost of…
A: A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price…
Q: The average fixed cost curve will never intersect with either the horizontal or vertical axis.…
A: Note: You have uploaded multiple questions at a time. Hence, we shall answer only the first one for…
Q: The real interest rate is the: O interest rate after taxes are deducted. O stated interest rate…
A: Inflation: The term inflation refers to the situation that indicates that the general prices of…
Q: 3. True or false? Briefly explain. a) If the economy is in the short-run macro-equilibrium there is…
A: In the long run the economy is at the natural rate of unemployment, which is the rate of frictional…
Q: 5 Outline the main monetary policy tools that a central bank can use to control money supply. To…
A: Monetary policy refers to the policy which affects the availability and cost of credit in the…
Q: For the cost function C(Q) = 500+12Q+4Q2+Q3, what is the marginal cost of producing the eighth unit…
A: Cost is a function of the quantity produced. It measures the cost incurred in the production of…
Q: Assume the capital stock depreciates at a rate of 15% per year. If the capital stock started the…
A: Given information: Capital stock depreciates at a rate of 15% per year Capital stock started the…
Q: 13. The operation and maintenance cost for a newly constructed dormitory is $125,000 for the first…
A: Given maintainance cost in Year 1 = 125,000 $ constant increase in cost = 22,500 $ Time = 30 years…
Q: Figure 3-1 Price (dollars per unit) 22 25 24 18 14 13 884 16 25 MC AVC AC MR
A: The given figure reflects that the market is competitive. Demand curve is constant so it is equal to…
Q: Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household…
A: Aggregate supply refers to the total supply available the market in a specific time period.…
Q: After the opening of trade, the Stopler-Samuelson theorem predicts Multiple Choice O rise in the…
A: When talking about international trade, there are numerous theories developed to explain the nature…
Q: ppose that the level of GDP increased by $400 billion in a private closed economy where the marginal…
A: Aggregate expenditure is characterized as the ongoing value of the multitude of completed goods and…
Q: Suppose there are two airlines, A and B, competing for the market of route from New York to…
A: The oligopoly market is just like the market of monopolist but here there are more sellers but the…
Q: Mario borrowed $2 million to sustain his educational needs. In an effort to pay off the loan…
A: Given that Mario borrowed $2 million i.e 2,000,000 To pay off the loan in 4 years, he made 4…
Q: When economy has recovered from deep recession from zero-lower-bound, there is no risk of using…
A: Zero-bound is an expansionary monetary policy instrument where a national bank brings transient…
Q: Which of the following illustrates scarcity? OA. Mary loves watching movies. OB. Ron will travel to…
A: Introduction Scarcity is a situation when demand for a good exceeds its supply even at 0 price. In…
Q: The production of fabric generates toxic effluents related to the dyes used. This is typically…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts for you.…
Q: A monopoly will expand its production until Marginal Revenue -Marginal Cost and charges a prices…
A: Monopoly A monopoly is the form of a market where there is a single seller of the commodity in the…
Q: A firm’s quantity of output is 10 units. The price of labor is $25 per unit and the price of capital…
A: "Firms/Businesses/Producers produce commodities and services to satisfy the demand of consumers.…
Q: Using the rule of 70 and assuming real GDP per capita increases at 4% per year, how many years will…
A: As given Real GDP per capita increases at 4% per year According to rule of 70 Number of years =…
Q: Novartis's Prescription for Invoice Processing What do you do when you have more than 600 business…
A: Factors contributed to Novartis’s invoice processing: A multinational corporation, Novartis has more…
Q: A construction manager just starting in private practice needs a van to carry crew and equipment.…
A: Alternative 1. Leased Cost = 3,510 per year Alternative 2. Buy Used Van = 5,185 Maintenance Cost =…
Q: Refer to Figure A-2. The supply curve S1 and the demand curve D show the initial market equilibrium…
A: Answer to the question is as follows:
Q: 1. GDP Computations Year 2020 2021 2022 The following table shows some data for an economy that…
A: "GDP represents the money value of all finished goods and services produced in a nation at a given…
Q: Suppose a commodity tax is legally placed on paper manufacturers. How the tax is split between the…
A: The burden of tax is shared by both consumers and producers irrespective on whom the tax is imposed.
Q: 8. The capitalized cost of a series of cash flows starting at the end of the first year with $7,500…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: 6. Calculating inflation using a simple price index Consider a fictional price index, the College…
A: Price index, proportion of relative price changes, comprising of a progression of numbers organized…
Q: Which of the following is the correct economic interpretation below? for the model LogQD = 9.5…
A: Given, demand curve equation is: logQd = 9.5 - 0.05P The demand curve represents the negative…
Q: When government tax policy requires Nathan to pay $30,000 in taxes on annual income of $300,000 and…
A: Given that the tax payer Nathan has to pay $30,000 in taxes on annual income of $300,000. On the…
Q: You manage a parking garage in a small college town. The faculty elasticity of demand is -1.33 and…
A: Given information: You manage a parking garage in a small college town. The faculty elasticity of…
Q: The marginal utility of the 8th can of beer is
A: In economics, marginal utility refers to the additional satisfaction or benefit (utility) a buyer…
8
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that new machines cost $504 and the value of marginal product of new machines is MPK = 246 - 6K, where K is the number of machines purchased. The depreciation rate of K is 15% and the dividend yield is 10%. What amount of K will you purchase?Assume $60,000 is going to be invested in each of the following assets, using table 12-11 and table 12-12 indicate the dollar amount of the first years depreciation a.office furniture b:automobile c.electric and gas utility property d.sewage treatment plantBarbara Thompson is considering the purchase of a piece of business rental property containing stores and offices at a cost of $350,000. Barbara estimates that annual receipts from rentals will be $55,000 and that annual disbursements. other than income taxes, will be about $18,000. The property is expected to appreciate at the annual rate of 5%. Barbara expects to retain the property for 20 years once it is acquired. Then it will be depreciated on the basis of the 39-year real-property class (MACRS), assuming that the property would be placed in service on January 1. Barbara's marginal tax rate is 30%, and her MARR is 10%. What would be the minimum annual total of rental receipts that would make the investment break even?
- 1. Hula hoop fabrications cost $100 each. The H2H company is trying to decide how many of these machines to buy. The number of hoops for each year and for each level of capital stock shown as follows: Hula Hoop have a real value of $1 each. There is no other costs besides the cost of fabricators. a. Find the expected future marginal product of capital (in terms of dollar) for each level of capital. b. If the real interest rate is 12% per year, and the depreciation rate of capital is 20% per year, find the user cost of capital (in dollar per fabricator per year). How many fabricators should H2H buy?9. Assume that a medical device has a useful life of 10 years, and it loses its real value at a constant rate (i.e. 1/10 of the original value per year). At a 6% interest rate, and including depreciation in the calculation, over a 7 year period a $80,000 investment must earn at least approximately ____________ to be economically viable. 10. Assume that a machine has a useful life of 9 years, and it loses its real value at a constant rate (i.e. 1/9 of the original value per year). At a 5% interest rate, and including depreciation in the calculation, over a 6 year period a $100,000 investment must earn at least approximately ____________ to be economically viable.Bear Stationaries is thinking about expanding its facilities. In considering the expansion, Bear’s CFO has obtained the following information: The expansion will require the company to purchase today (t = 0) $5 million of equipment. The equipment will be depreciated over the following four years at the following rate: Year 1: 33% Year 2: 45 Year 3: 15 Year 4: 7 The expansion will require the company to increase its net operating working capital by $500,000 today (t = 0). This net operating working capital will be recovered at the end of four years (t = 4). The equipment is not expected to have any salvage value at the end of four years. The company’s operating costs, excluding depreciation, are expected to be 60 percent of the company’s annual sales. The expansion will increase the company’s dollar sales. The projected increases, all relative to current sales are: Year 1: $3.0 million Year 2: 3.5 million Year 3: 4.5 million Year 4: 4.0 million (For example, in Year 4…
- You are evaluating a project that will require an investment of $15 million that will be depreciated over a period of 19 years. You are concerned that the corporate tax rate will increase during the life of the project. Would this increase the accounting break-even point? Would it increase the NPV break-even point?If K/N = 27 this year, and K/N = 30 last year, then saving is __ depreciation this year. greater than less than equal to twiceAAA Agricultural Machinery decides to invest in new robots. The cost of a robot is $1000.Suppose the expected real interest rate is 3% and capital depreciation rate is 6%. The firmpays taxes equal to 10% of their output. What is the *tax-adjusted* user cost of capital?
- You buy an asset today for $200,000 that can be depreciated over three years in a straight line. What is the present value of the total depreciation tax shield over the life of the asset? Assume that the opportunity cost of capital is 5% and your tax rate is 37.5%. A. $68,076 B. $47,655 C. $22,693 D. $45,385Legacy Solution A21. Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.Charles lives in Houston and operates a small company selling drones. On average, he receives $849,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $390,000. He also pays several utility companies, as well as his employees wages totaling $359,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $72,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Charles does not operate the drone business, he can work as a programmer and earn a yearly salary of $25,000 with no additional monetary costs, and rent out his storefront at the $72,000 per year rate. There are no other costs faced by Charles in running this drone company. Identify each of Charles’s costs in the following table as either an implicit cost or an explicit cost of selling drones. Implicit Cost Explicit Cost The salary Charles could…
