Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Chapter 6, Problem 16P
To determine
The effect of tax burden on consumers and producers if demand for food is inelastic, supply for food is elastic, demand for basketball games is elastic and supply for basketball games is inelastic.
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An engineer is working on the layout of a new research and experimentation facility. Two operators will be required. If, however, an additional $100,000 of instrumentation and remote controls were added, the plant could be run by a single operator. The total before-tax cost of each plant operator is projected at $35,000 per year. The instrumentation and controls will be depreciated by means of a modified accelerated cost recovery system (MACRS). If this corporation (22% combined corporate tax rate) invests in the additional instrumentation and controls. how long will it take for the after-tax benefits to equal the $100,000 cost? In other words, what is the after-tax payback period?
Please write out every step and formula, don't use excel. The answer should be 3.08 years, thank you.
The effective combined tax rate in a firm is 28%. An outlay of $2 million for certain new assets is under consideration. Over the next 9 years, these assets will be responsible for annual receipts of $650,000 and annual disbursements (other than for income tax) of $225,000. After this time, they will be used only for stand-by purposes with no future excess of receipts over disbursements. (a) What is the prospective rate of return before income taxes? (b)What is the prospective rate of return after taxes if straight-line depreciation can be used to write off these assets for tax purposes in 9 years? (c) What is the prospective rate of return after taxes if it is assumed that these assets must be written off for tax purposes over the next 20 years, using straight-line depreciation?
Please write out each step with formulas and don't use Excel. The answers should be (a)15.4% (b) 11.5% (c) 10.0%, thank you
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1. (Maximum length one page)
Consider an infectious disease with the following characteristics:
Individuals can exist in three states, susceptible, infected, and recovered. Once recovered, an individual
cannot be re-infected and remains immune for life.
The transmission rate, t, is 1/20.
The recovery rate, k, is 1/5.
Each person interacts randomly with others in the population and has contacts with 10 people each
time period.
There is no birth or death in the population.
-Initially all people are susceptible.
- No one dies from the disease and there is no treatment.
a) Draw a compartmental model for this infectious disease.
Chapter 6 Solutions
Exploring Economics
Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Explain why using the midpoint formula for...Ch. 6 - Prob. 7PCh. 6 - If the elasticity of demand for hamburgers equals...Ch. 6 - Evaluate the following statement: Along a...Ch. 6 - If the midpoint on a straight-line demand curve is...
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