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Specialty Maching, INC bought a new multi-turret turning center for 250000. The machine generated new revenue of 80000 per year. Operating costs for the machine averaged 10000 per year. Following IRS regulations, the machine was depreciated using the MACRS method, with a recovery period of 7 years. The center was sold for 75000 after 5 years of service. The company uses an after-teax MARR rate of 12% and is in the 35% tax bracket. Determine the after-tax net present worth of this asset over the 5-year service period.
Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?
Express the production function in per worker terms. Thus, y = f (k) where y = Y/L and k=K/L. Suppose that both countries start off with a capital stock per worker of 2 (i.e. k = 2). What are the levels of income per worker and consumption per worker..
Assume that the labor demand equation for a fictional country is Ld = 90 – 2w, where w is the wage per hour worked. Assume also that the labor supply equation for that country is Ls = 0.5(w). If the supply of workers increased, the number of unemploy..
The presence or even the threat of prize freezes (i.e. price controls) may induce firms to integrate vertically (to merge with “upstream” supplier firms or with “downstream” customer firms). Explain why.
Romans utility function os U(x,y)=6xy. The prices of goods x and y are $12 and $15. The indifference curve is tangent to his budget constraint, where he is consuming 20 units of good x. How many units of good y must he be consuming?
Calculate how large A would have to be so that in the new LRCE, the number of firms is twice what it was in the initial equilibrium.
Systems and equipment for communication, transportation, and sanitation make up. In developing countries, on average, nearly ___ of the labor force is employed in the agricultural sector; compared to 3% in industrial market economies. Which is NOT an..
q1. a community wants to construct a hazardous waste incinerator for household hazardous waste. the cost of the
Consider an economy with the following Cobb-Douglass production function: Derive the equation describing labor demand in this economy as a function of the real wage and capital. The economy has 27,000 units of capital and a labor force of 1000 worker..
Why is the debate between the international dependence and the neoclassical counter-revolution schools referred to as “finger pointing?”
Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers (individuals who re-sell tickets at the event) were selling tickets in the same seating area as yours for $25. What is probably true?
Elucidate why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular.
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