Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if:Instructions: Enter your responses as whole numbers. Actual investmentPlanned investmenta. Acme actually sells $3,850,000 worth of goods.$ $ b. Acme actually sells $4,000,000 worth of goods.$ $ c. Acme actually sells $4,200,000 worth of goods.$ $ Assuming that Acme’s situation is similar to that of other firms, in which of these three cases is output equal to short-run equilibrium output?Case bCase cCase aNone

The investment consist of two components: new investments which is called net investment and net…

Answered: Acme Manufacturing is producing…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if:

Instructions: Enter your responses as whole numbers.

	Actual investment	Planned investment
a. Acme actually sells $3,850,000 worth of goods.	$	$
b. Acme actually sells $4,000,000 worth of goods.	$	$
c. Acme actually sells $4,200,000 worth of goods.	$	$

Assuming that Acme’s situation is similar to that of other firms, in which of these three cases is output equal to short-run equilibrium output?

Case b
Case c
Case a
None

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