Given the following table of cost data: MARR = 15% APR Market Value, MV MV(0) MV(N). $14,000 $2,000 $50,000 $5,000 $45,000 Machine Current O Yes O No Improved Answer the following. a. Should the current machine be replaced immediately? FC dollars/yr. AOC $8,000 $3,750 dollars/yr. Useful Life, N 10 more b. What is the TAW associated with the current machine and the decision in part a? years 15 years c. What is the TAW associated with the improved machine and the decision for replacement in part a? d. What assumption is implied in order to calculate the results for parts b and c?
Q: The demand and supply functions in the market for Dentemprika yam are given as: Q =300-50P and…
A: The point at which the quantity of a good or service that buyers are willing and able to purchase is…
Q: The depreciation rate of capital in the US is 8 = 0.043 and the population growth rate is g₁ =…
A: ? = 0.043, gL = 0.007, Y/K = 0.35, and s = 0.2,
Q: Using the “dynamic aggregate demand” and “dynamic aggregate supply” (DAD/DAS) model: draw a graph…
A: The DAD-DAS framework, short for Dynamic aggregate Demand- Dynamic aggregate Supply framework, is an…
Q: National and International Accounts: Income, Wealth, and the Balance of Payments - End of Chapter…
A: Macroeconomic aggregates are measurable evaluations that reflect the general performance of a…
Q: With the aid of a diagram, describe a corner solution and explain the axioms of consumer choice.
A: Indifference curve represents a set of combination of two goods that offer same level of…
Q: Simone founded her company using $100,000 of her own money, issuing herself 200,000 shares of stock.…
A: Post-money valuation is the value of a company after a round of investment has been made…
Q: How much is 15,421PhP worth after 7 years if it is deposited in a bank whose nominal rate of…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: The amount that personal households and nonprofit organizations have invested in time and savings…
A: Given: D(t)=65.3t-3.32+4585 Here D represents the amount in billions of dollars the household and…
Q: Nobody grows or squeezes more oranges than Brazil, where orange trees now outnumber people and…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: What is the definition of Gross Domestic Product (GDP)? Select one: O a. The market value of all…
A: Gross Domestic Product (GDP) is a measure used to estimate the total value of all goods and services…
Q: An engineer has received $10,000 from his employer for a patent disclosure. He has decided to invest…
A: Formula for future value is given as: F = P*(1+R)t F : future value P : present value R : rate of…
Q: 1) https://www.youtube.com/watch?v=u5P8AZRBLac 2) https://www.youtube.com/watch?v=9MpVjxxpExM…
A: There are many countries which are rich , many country that are slowly becoming rich and some…
Q: Why is comparative advantage more important than absolute advantage in determining whether trade is…
A: Comparative advantage refers to the ability of a country, individual, or firm to produce a…
Q: Shift the demand curve, the supply curve, or both to show what would happen if the government…
A: Despite the many benefits it has brought, globalization has had several kinds of negative impacts,…
Q: Classification analysis as the method for approximation of variable and fixed costs a) Is using for…
A: Production and cost constitute the two basic economic concepts that impact business choices and…
Q: The figure to the right shows the marginal cost of pollution abatement for two firms, A and B. The…
A: Given graph: In the given graph, when both firms pollutes 46 units each Cost of abatement for firm…
Q: Distinguish between the theories of absolute and comparative 3b. Identify THREE (3) barriers to…
A: The allocation of finite resources for production, distribution, and consumption by individuals and…
Q: The firm Newtown Grocery generates $298,000.00 of revenue in a market that generates $835,000.00 of…
A: Market share of a firm is the revenue generated by a single firm over the total revenue of the…
Q: Use the figure for the question(s) below. Price A B D Quantity 40) In the figure above, a quota…
A: When a nation limit the number of imports in terms of volume it will be termed to be a quota. The…
Q: The Standard & Poor's 500 Index (often referred to as S&P 500) is a weighted average of prices of…
A: Expected value of return is a concept in that measures the average return an investor can expect to…
Q: Identify what type of goods each of the following items are: A. Private Good B. Public Good 2 1.…
A: Let's first understand what does public and private good means:-
Q: 1. Assume the economy starts at full employment. Illustrate the short-run and long-run impact of an…
A: The AD -AS model represents the macroeconomic equilibrium. The equilibrium price level and real gdp…
Q: The graph shows the demand for labor curve and supply of labor curve for an economy. Draw a point at…
A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…
Q: A person buys a piece of lot for P 105,977 down payment and 10 deferred semi-annual payments of P…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: The Utility fct is U = W2/3 + 1000 Flood occurs with Probabilities=1/20. The Value of house $540,000…
A: Given U = W2/3 + 1000 if flood , P(flood) = 1/20 , value of house = $40,000 if no flood , P(no…
Q: Relationship betwe Choice A Suppose there's an appliance store that produces and sells air…
A: The total revenue is maximum at the output level where the marginal revenue is 0. marginal revenue…
Q: Price discrimination is the practice of selling goods at different prices to different consumers.…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If the sanction (punishment) is 4 years, what is the total social cost of jailing criminals (number…
A: Social costs are the sum of private costs and any other external costs to society arising from the…
Q: A corporate bond maturing in 15 years with a coupon rate of 10.9 percent was purchased for $970 and…
A: Face value=1000 Maturity time=15 years Coupon rate=10.9% Purchase price=$970 Interest rate…
Q: Suppose that there are drastic technological improvements in shoe production at Home such that shoe…
A: Given the below data: For computers Payments to labor = WLC = 50 Payments to capital = RKC = 50…
Q: A. Explain the principle known as monetary policy ineffectiveness and discuss Lucas’ argument as to…
A: Monetary policy refers to the actions taken by a central bank or monetary entities to oversee and…
Q: Reconsider the question above. If COVID 19 is causing increased uncertainty in the suppliers ability…
A: Total Revenue is the product of price and quantity. Marginal cost is the cost of producing an…
Q: How relation with Gdp can be reliable indicator of standard of living and use fiscal and monetary…
A: The implementation of fiscal and monetary instruments to have an effect on economic outcomes is…
Q: Sarah loans an amount from a bank and promise to pay at the end of 8 years and 5 months all her debt…
A: Given Debt amount at the end of 8 years and 5 months = 305,822. Nominal interest rate =10.115%…
Q: The industry demand curve for a particular market is Q = 1800 - 200P. The industry exhibits constant…
A: Perfect competition is a market structure in which there are many tiny enterprises producing…
Q: QUESTION ONE A. On the same set of axes for two goods, X and Y; i. Draw an indifference Map (convex…
A: Note: There are multiple questions. Hence, we shall answer only the first question with all the…
Q: Public goods have the following characteristics Orivaled Oexcludable Onon-excludable Olow social…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: The table below shows revenue data for different firms producing computers. Use the given…
A: A commonly used measure of market concentration that takes into account the share of the four firms…
Q: Using the graph, shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve…
A: AD(aggregate demand) is the sum of C(consumption), I(investment ), G(government spending) and net…
Q: r to the accompanying game. Firm A Firm B Low Price High Price Low Price (10,9) (15,8) High…
A: Nash equilibrium occurs where a firm take best course of action provided the rival firm strategies…
Q: Discuss the three-legged-stool approach of Massachusetts's experiment with incremental universalism.…
A: Incremental universalism is an approach to achieving universal healthcare coverage by implementing…
Q: A company purchased a machine last year for $150,000. Revenue for the first year was $50,000. Over…
A: When a fixed asset reaches the end of its useful life and can still be recovered through resale,…
Q: Which of the following correctly explains the effect of a variable on the labor demand curve? A.…
A: Labor Demand Curve is the graphical representation of the willingness of the employers to hire…
Q: lized, P=MC. He makes a positive profit. a. Draw the Demand curve, MR, MC, and ATC reflecting this…
A: The firm faces monopolistic competition, which means that it operates in a market with many other…
Q: Complete the following table by indicating whether each of the scenarios describes the concept of…
A: Price, which represents the value given to a commodity or service, is established by a challenging…
Q: Consider a Cournot oligopoly consisting of five identical firms producing good X. If the firms…
A: Cournot's model is a version of oligopoly in which companies generating identical products compete…
Q: 17. Identify the type of government policies promoting innovation and social benefit represented by…
A: Government policies can play a crucial role in promoting innovation and social benefits. Some key…
Q: P ($ per gallon) $2.20 $1.80 $1.40 $1.20 $1.00 $0.60 Excess supply or surplus MAN. E Equilibrium…
A: The equilibrium price is the price at which the demand curve intersects the supply curve. This point…
Q: Please I need a short summary for this video:…
A: The question asks to summarise the contents of the video which contains the mechanism involved in…
Q: The government possesses the tools necessary to influence the output level in the short run through…
A: Stabilization policy: refers to the use of government policies, specifically fiscal and monetary…
Step by step
Solved in 3 steps with 1 images
- Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGEQUANTITYSOLD (UNITS/MONTH) CURRENTPRICE TOTALREVENUE VARIABLECOST PERUNIT CONTRIBUTIONMARGIN PERUNIT CONTRIBUTIONMARGIN* A B C Total 15,000 5,000 10,000 $30 35 45 $450,000 175,000 450,000 $1,075,000 $15.00 18.00 20.00 $15 17 25 $225,000 85,000 250,000 $560,000 *Contribution to fixed costs and profits.The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model C to be approximately 0.2. Variable costs…Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table set: Annual demand Current order qu Carrying cost Order cost 3.920 sets 30 sets $80.00/set/year $200 a. What is the current total annual cost (TC) b. What is the economic order quantity (EOQ)? c. What is the total annual cost at the economic order quantity (EOQ)Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.
- Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost P8.00, annual demand of 40000, and ordering cost of P48. *A plant operation has fixed costs of $1771001 per year, and its output capacity is 116606 electrical appliances per year. The variable cost is $38 per unit, and the product sells for $93 per unit. a.What is the break-even point in terms of units?An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000 +20.2D +0.0001D². The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly
- AN EXECUTIVE RECEIVES AN ANNUAL SALARY OF P600,000 AND HIS SECRETARY A SALARY OD 180,000.A CERTAIN TASK CAN BE PERFORMED BY THE EXECUTIVE WORKING ALONE IN FOUR HOURS. IF HE DLEGATES THE TASK TO HIS SECRETARY WILL REQUIRE HIM 30 MINS TO EXPLAIN THE WORK AND ANOTHER 45MINS TO CHECK THE WORK. DUE TO THE UNFAMILIARITY OF THE SECRETARY TO DO TASK, IT TAKES HER AN ADDITIONAL TIME OF 6HOURS AFTER BEING INSTRUCTED. CONSIDERING SALARY COST ONLY, DETERMINE THE COST OF PERFORMING THE TASK BY EACH METHOD, IF THE SECRETARY WORKS 2400HOURS A YEAR AND THE EXECUTIVE 3000 HOURS A YEAR. COST OF PERFORMING THE TASK: SECRETARY WORKING WITH EXECUTIVEaccounting profit by Weplit costs wn $160,000 and implick costs are $72,000, economic profit isThe graph shown below is that of Do Drop In, a shop in the dry-cleaning industry. Cost and revenues (in dollars) 20 18 16 14 12 10 60 MR 120 180 240 MC D Quantity per period AC 300 360 420
- 13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?Q Total Cost ATC AFC MC 0 10 - - - 10 12 12/10=1.2 10/10=1 12-10/10-0=0.2 20 16 16/20=0.8 10/20=0.5 16-12/20-10=0.4 30 26 26/30=0.867 10/30=0.333 26-16/30-20=1 40 38 38/40=0.95 10/40=0.25 38-26/40-30=1.2 50 75 75/50=1.2 10/50=0.2 75-38/50-40=3.7 60 120 120/60=2 10/60=0.167 120-75/60-50=4.5 What output or q (in the units of 10) is the most efficient production level?Q Total Cost ATC AFC MC 0 10 - - - 10 12 12/10=1.2 10/10=1 12-10/10-0=0.2 20 16 16/20=0.8 10/20=0.5 16-12/20-10=0.4 30 26 26/30=0.867 10/30=0.333 26-16/30-20=1 40 38 38/40=0.95 10/40=0.25 38-26/40-30=1.2 50 75 75/50=1.2 10/50=0.2 75-38/50-40=3.7 60 120 120/60=2 10/60=0.167 120-75/60-50=4.5 If the market price is $1.00 then what output or q (in the units of 10) is the most profitable production level?