2. Give a graphical example of a case where a firm has incentives to invest in capital-saving technology despite low capital prices and high wages.
Q: Rashid is studying Masters Degree in Sultan Qaboos University, Muscat. His research topic is "The…
A: Research is the process of creative and systematic study using the collection of data and…
Q: Suppose the government passed a tax reform giving an investment tax credit to any firmbuilding a new…
A: Explained below in detailExplanation:Detailed explanation:To demonstrate the impact of the…
Q: 1. Define the Following A. Economics B. Factors of Production C. Scarcity
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Give a graphical example of a case where a firm has incentives to invest in capital-saving…
A: Technology: It refers to the increase in innovation in the firm. The increase in technology will…
Q: An important consideration that entrepreneurs face in their decision making is their willingness to…
A: Enterpreneurship is one of the four factors of production. An enterpreneur applies his creative and…
Q: 6-17 A rough rule of thumb for the chemical industry is that $1 of annual sales requires $2 of…
A: A corporation makes a capital investment when it buys tangible assets to utilize in achieving its…
Q: 21. When considering ethical issues relating to the opportunity, which of the following should South…
A: An ethical issue refers to an identifiable concern, situation, problem, or opportunity that requires…
Q: Figure 7-2 O Refer to Figure 7-2. With a quadratic production with fixed capital Q = A + BL - CL²…
A: Production function: Production function signifies all of the input combinations that attain the…
Q: Give an example of a firm that uses a foreign direct investment mode (international joint venture,…
A: A foreign direct investment (FDI) is an investment made by a company based in another nation that…
Q: 15. Consider a single competitive firm that starts off with zero capital in time 1. It's trying to…
A: * SOLUTION :- (10) Given that ,
Q: One concern with the stakeholder model of business activity is that we can define "stakeholder" in…
A: A stakeholder is a party who has a significant interest in a company and can either affect or be…
Q: dw - Prove that MFC = w+L¬. Explain fully what the equation says.
A: Marginal Factor Cost is defined as the extra cost which is incurred by the monopsonist when he…
Q: Select one: O a. Producers in France would receive extra profit by adopting a labour-saving…
A: Labor refers to the physical and mental effort or work that individuals, employees, or workers…
Q: Which of the following terms is associated with giving up the chance to earn a return on investment…
A: Cost describes the expenditure or outflow of money from the organization when making various…
Q: explain wheather or not you agree with the following statement" A company has R500 million in a…
A: Economic capital could be a measure of risk in terms of capital. more specifically, it is the amount…
Q: Only typed answer and don't use chatgpt A firm's current profits are $950,000. These profits are…
A: The Gordon Growth Model, often known as the dividend discount model (DDM), can be used to estimate…
Q: Which of the following best describes equity in a firm?
A: In order to answer the above question let us first understand the concept of a public company. The…
Q: Christina is a young worker who wants to plan for her retirement early in life. Suppose that she…
A: Given information: Let's assume Period 1 implies young and Period 2 implies old. Christina earning…
Q: Other things equal, a low saving rate ultimately tends to cause Oa relatively little new purchasing…
A: The saving rate is the amount of money that the consumer set aside from its disposable income after…
Q: There are 4 types of capital: tangible private, intangible private, tangible social, and intangible…
A: Tangible Business Capital:Tangible business capital refers to the physical assets and resources that…
Q: Sarah used to work as a business manager in a small company for $50,000 per year but quit to start…
A: Economic profit is the money left over after all direct and indirect expenses have been paid.…
Q: Which of the following is NOT a commonly cited means of protecting an innovation? Keeping it a…
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…
Q: True or False? Always justify your answer, it is more important than getting It right If the…
A: The expected returns on a company's securities are referred to as the cost of capital. Companies use…
Q: 4. Suppose that there is a tax 7 on the sales of the firm, so that the firm only gets (1-7) times…
A: Given:Tax T on salesRevenue received by firm: (1-T) * MPKBenefit of operating capital stock for one…
Q: 2. Sam quits his job as an airline pilot and opens his own pilot training school. He was earning…
A: economic profit is calculated by subtracting all the costs (implicit - opportunity cost that is…
Q: Profit Maximization. Assume that the output price p, wage rate w, and rate of return to capital rare…
A: The production function determines all the input bundles that produce the same output level. The…
Q: Why is the distinction between insurable and uninsurable risks signifificant for the theory of…
A: The discrepancy among income earned from the sales of a production and the expense of all materials…
Q: 3. You are an avid user of ArchimedAl, a large language model-powered generative Al program that you…
A: The objective of the question is to calculate the capitalized cost of using the AI program and the…
Q: 1. Describe and provide a graphical illustration of the theory of induced technological innovation.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Imagine that you are faced with the following three public projects, each of which costs $3000.…
A: Given: Discount rate=12%
Q: Q3. A) If the supply price of machine is Rs. 3000 and Marginal productivity of capital is 10% , the…
A: The value of money refers to the number of goods and services one can buy using it. It is calculated…
Q: 1. A firm is extracting a non-renewable resource in a competitive market. The marginal cost of…
A: MCe =$3 Market price in t period is $4 Market price in t+1 period is $4.25
Q: 2. As a Sophomore Student of our Pontifical University, you are being invited to discuss before the…
A: When calculating or projecting the return on an investment, two methodologies can be used: the…
Q: rue or False[explain] A)The lower the discount rate used in allocating future resources, the more…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Compare and contrast the difference between dynamic (intertemporal) efficiency and static efficiency…
A: Since you have asked a question with multiple sub-parts we will solve the first 3 sub-parts. To get…
Q: A large mountain area in Western Norway has very favorable wind conditions and opportunity to…
A: Wind turbine is a device that converts the wind's kinetic energy into electrical energy. There is…
Q: Consider a household with a wealth endowment of $5, and a MB of consumption of $1.71, 1.53, 1.39,…
A: "Marginal benefit" refers to the additional benefit that is gained from consuming or producing one…
Q: Answer True, False or Uncertain. Brieáy explain your answer 3.The rate of return equality holds in…
A: When a security or other asset cannot be rapidly and readily sold or exchanged for cash without…
Q: 2. A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a…
A: Option A is correct.
Q: The following graph shows the supply of and demand for capital in a market over the last year. You…
A: Loanable Funds Market: In the market for loanable funds there are economic agents like governments,…
Q: Use the table below that shows the rate of return and R&D spending for a hypothetical firm. Assume…
A: Marginal benefit represents the expected return from the last dollar of money spent on research and…
Q: Which of the following inputs do you think include relatively large economic rents in their…
A: Various economic inputs have their need in the economy as per their demand and supply, price of…
Q: 3. Consider a dynamic (two-period) representative firm's problem. This representative firm is given…
A: The objective of the question is to define the profit functions for a representative firm over two…
Q: Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $100,000…
A: Pollution Busters are contemplating purchasing 10 additional carbon sequesters.The cost of each…
Q: 1. Briefly explain what the term "agglomeration economies" refers to and briefly describe what…
A: 1) A localized economy known as an agglomeration of economies is one in which a significant number…
Q: How are big businesses beneficial in financially supporting smaller businesses that are struggling…
A: Law of Demand assumptions--demand for other goods like substitutes and complements and Law of supply…
Q: Assume that a country is endowed with 33 units of oil reserve. (a) the marginal willingness to pay…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Step by step
Solved in 2 steps with 1 images
- Microsoft has the opportunity to purchase a new factory today that will provide them with a $50 million return four years from now. If prevailing interest rates are 6 percent, what is the maximum that the project can cost for Microsoft to be willing to undertake the project? a. $53,406,002 b. $39,604,682 c. $43,456,838 d. $50,000,000 e. $34,583,902 D DInduced investment is made with the intent of producing a substantial output. a. producing a substantial output. b. marginal efficiency of capital with the rate of interest c. to meet the equilibrium of demand3. Explain the reality of loss-making beginning and uncertainties in taking ECE ideas to market.Briefly explain different means of creating and capturing economic value out of technologypossibilities
- 1. Which of the following is not an external growth strategy? А. Licensing В. Mergers and Acquisitions С. New Product Development D. Joint Venture E. Franchising 2. In the business plan, ( ) provides a busy reader with everything that needs to be known about the new venture's distinctive nature. A. Table of Contents В. Executive Summary C. Company Description The Economics of the Business MUOWCHE D. E. Marketing PlanPlease provide answer in 1 hr please urgentDefine (1) Economic Stocks and (2) Economic Flows.
- 2. A group of investors is planning to build an athletic equipment and apparel store in Saskatoon, close to a group of existing big box stores. The group spends $800,000 to buy the required land and to develop the parking lot. After completing these steps they terminate the project when they learn that another athletic store is going to be built close by. What option have the investors exercised? Three years later, the investors still own the land and improvements. How should they value these things if they decide at that time to complete the store as originally planned?3. Consider a dynamic (two-period) representative firm's problem. This representative firm is given K unit of capital to produce in the current period. Firm can choose (current-period and future-period) labor demands and investment (to adjust future- period's capital stock) to maximize its present-value lifetime profit. Given that the market interest rate is r and the capital depreciation rate is & after production in each period. Let's further assume that this firm sells all the capital after future-period production. (a) Clearly definite the profit functions for both periods and write down this repre- sentative firm's problem. (b) Write down the optimal condition on investment. Intuitively explain the optimal condition. (c) Suppose K increases, graph the change of investment curve. Intuitively explain the changes on the graph you just drew.Consider the figure to the right. Suppose that Q₁ = 8 acres and P₁ = $1,700 per acre. What is the dollar amount of economic rents received during the current period, and why is this amount classified as economic rents? The dollar amount of economic rents received during the current period is $ (Enter your response as a whole number.) C Price per Unit P1 E1 Q1 Quantity of Land S D E
- Question 26 Which one of the following is an incorrect statement about the effect of US natural capital on market growth? O New York City has a large harbor along a major river, the Hudson. With the completion of the Erie Canal in 1825, the locational advantages of New York were enormous. Between 1790 and 1850, New York's population increased from 33,000 to over 800,000. O h the eighteenth and nineteenth centuries, land abundance and avalability promoted low rates of population growth through natural increase because it discouraged high birth rates and fostered relatively high mortality rate. O In 1900, the twenty largest American cities were all located on major waterways. Before Colorado entered the Union in 1876, all U.S. states had at least one border delineated by rivers or oceans. O Many cities in the United States formed at obstacles to water navigation, where continued transport required overland hauling or portage. Portage sites attracted commerce and supporting services, and…Why does the rate of return (RoR) regulation stimulate more than the efficient level of capital investment from the regulated utilities companies? a. A state government directly subsidies capital investments. b. The capture effect rewards capital investment more than other types of investment. c. The RoR is applied to the rate base, which includes capital but not operating costs. d. Regulator salaries increase as capital increases.Edward the entrepreneur takes 2 hours to cut a lawn, and he cuts 1,000 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever- and can be sold at any time for $40,000. Edward could earn $11 per hour as a pedicurist. The interest rate is 10 percent. Given his current output level, compute his average cost of cutting lawns. $20 $24 $22 $28 $26
