Economics (12th Edition)
12th Edition
ISBN: 9780133872279
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 24, Problem 1SPA
To determine
Calculate Michael’s gross investment,
Expert Solution & Answer
Explanation of Solution
The total amount of money spent on the new capital is gross investment. During the period of 2015, Michael has purchased $500,000 of new servers. Thus, the gross investment in 2018 is $500,000. At the same time the market value of older servers falls by $100,000. That means the depreciation of the older servers is $100,000. Since, the gross investment is $500,000 and the depreciation is $100,000, the net investment can be calculated as follows.
Thus, Michael’s net investment is equal to $400,000.
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The following graph plots daily cost curves for a firm operating in the competitive market for sweatbands.
Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates.
Profit or Loss0246810121416182050454035302520151050PRICE (Dollars per sweatband)QUANTITY (Thousands of sweatbands per day)MCATCAVC8, 30
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Chapter 24 Solutions
Economics (12th Edition)
Ch. 24.1 - Prob. 1RQCh. 24.1 - Prob. 2RQCh. 24.1 - Prob. 3RQCh. 24.1 - Prob. 4RQCh. 24.2 - Prob. 1RQCh. 24.2 - Prob. 2RQCh. 24.2 - Prob. 3RQCh. 24.2 - Prob. 4RQCh. 24.2 - Prob. 5RQCh. 24.2 - Prob. 6RQ
Ch. 24.2 - Prob. 7RQCh. 24.3 - Prob. 1RQCh. 24.3 - Prob. 2RQCh. 24.3 - Prob. 3RQCh. 24 - Prob. 1SPACh. 24 - Prob. 2SPACh. 24 - Prob. 3SPACh. 24 - Prob. 4SPACh. 24 - Prob. 5SPACh. 24 - Prob. 6SPACh. 24 - Prob. 7SPACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - Prob. 10SPACh. 24 - Prob. 11SPACh. 24 - Prob. 12APACh. 24 - Prob. 13APACh. 24 - Prob. 14APACh. 24 - Prob. 15APACh. 24 - Prob. 16APACh. 24 - Prob. 17APACh. 24 - Prob. 18APACh. 24 - Prob. 19APACh. 24 - Prob. 20APACh. 24 - Prob. 21APACh. 24 - Prob. 22APACh. 24 - Prob. 23APACh. 24 - Prob. 24APACh. 24 - Prob. 25APACh. 24 - Prob. 26APACh. 24 - Prob. 27APACh. 24 - Prob. 28APA
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