How are depreciation deductions different from other production or service expenses such as labor, material, and electricity? (7.2)

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Answer 1

Textbook Question

Chapter 7, Problem 1P

How are depreciation deductions different from other production or service expenses such as labor, material, and electricity? (7.2)

Expert Solution & Answer

To determine

Depreciation.

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

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02:23

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1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically. 2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer.State the condition for a consumer's utility maximizing choice and illustrate graphically.

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically.

Answer 2

Textbook Question

Chapter 7, Problem 1P

How are depreciation deductions different from other production or service expenses such as labor, material, and electricity? (7.2)

Expert Solution & Answer

To determine

Depreciation.

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

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Answer 3

Textbook Question

Chapter 7, Problem 1P

How are depreciation deductions different from other production or service expenses such as labor, material, and electricity? (7.2)

Expert Solution & Answer

To determine

Depreciation.

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

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02:23

Answer 4

Textbook Question

Chapter 7, Problem 1P

How are depreciation deductions different from other production or service expenses such as labor, material, and electricity? (7.2)

Expert Solution & Answer

To determine

Depreciation.

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Depreciation.

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

Answer 8

Expert Solution & Answer

To determine

Depreciation.

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Depreciation.

Answer 12

Explanation of Solution

The difference in depreciation deduction from other costs such as labor, material, and electricity is that the depreciation value cannot be calculated until the asset is exhausted, the life time of the asset, the depreciation value are estimated each year, depreciation controlled through the maintenance expenditure and the depreciation can be postponed for some year, and it is unavoidable.

Answer 13

Ch. 7 - How are depreciation deductions different from...Ch. 7 - Prob. 2P Ch. 7 - Explain the difference between real and personal...Ch. 7 - Prob. 4P Ch. 7 - Prob. 5P Ch. 7 - Prob. 6P Ch. 7 - Prob. 7P Ch. 7 - Prob. 8P Ch. 7 - Prob. 9P Ch. 7 - Prob. 10P

How are depreciation deductions different from other production or service expenses such as labor, material, and electricity? (7.2)

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