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You have opened your own word-processingservice. You bought a personal computer, and paid $5,000 for it.However, due to the cost changes in the computer industry, thecurrent price of an equivalent machine is $2,500. You could sellany used machine for $1,000. If you were not word processing, youcould earn $20,000 per year at an alternative job. Assume that theinterest rate is 10%. You can also hire an assistant who can doeverything that you can do for $20,000 per year (you would stillcontinue to do word processing).One person using one computer can produce 11,000 typed pages peryear, and the price per page for your service is $2.
You are considering three options:
(1) expand your business by hiring an assistant.
(2) leave your business the way it is
(3) shutdown. Based on the costs and revenues above, which should you do? Explain and show any relevant calculations.
illustrate what prevented the villagers from reaching this higher-income allocation of resurces when they acted independently
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
show the effects of an increase in the Chinese purchases of U.S. Treasury bonds. How do these purchases affect the value of the dollar and of the yuan?
Illustrate what would happen in the Tempe pizza marketplace if pizza also sub sandwiches are substitutes also there occurred
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
Determine tax that would in a monopolistic market producing socially efficient output. Assuming that no attempt is made to monitor or regulate pollution, which market structure yields higher social welfare. Discuss.
The Honolulu tourism commission currently proposed a 7% tax on hotel rooms to pay for an outdoor amphitheater.
Find out the ash equilibrium outcomes to this game. Illustrate which of the equilibrium outcomes is most reasonable.
Which is the expected utility of wealth. Beatrix has $109 of wealth. She is contemplating a gamble that gives her a 0.25 probability of winning $180 and a 0.75 probability of losing $60.
Why Should we remove all barriers to immigration into the United States. What would be the outcome.
A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax consumption schedule
Assume Caesar allocates his entire budget to the purchase of chips as well as soft drinks.
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