Reference no: EM131198015
For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 10 percent annually.
a) A computer server to run the firm’s network is leased for $6,000 per year.
b) The owner starts the business using $50,000 of cash from a personal savings account.
c) A building for the business was purchased for $18 million three years ago but is now worth $30 million.
d) Computer programmers cost $50 per hour. The firm will hire 100,000 hours of programmer services this year.
e) The firm owns a 1975 model Clarke-Owens garbage incinerator, which it uses to dispose of paper and cardboard waste. Even though this type of incinerator is now illegal to use for environmental reasons, the firm can continue to use it because it’s exempt under a “grandfather” clause in the law. However, the exemption only applies to the current owner for use until it wears out or is replaced. (Note: The owner offered to give the incinerator to Smithsonian Institute as a charitable gift, but managers at the Smithsonian turned it down.)
At that reserve price what is the expected profit
: What is the best reserve price?- At that reserve price, what is the expected profit? - At that reserve price, what is the standard deviation of profit?
|
Aw materials-labor expense-utilities and rent
: During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and e..
|
Presence of positive economic profits
: Describe an episode in which what appeared to be the presence of positive economic profits attracted entry to a market. It should describe the nature of the market and the circumstances surrounding the entry of new firm(s).
|
Examine the challenges faced by the hr team
: Discuss the significance of HR playing a major role in delivering the strategic goals of the organisation at Mitchells & Butlers. Examine the challenges faced by the HR team in transforming the HR strategy through their various HR practices
|
Explain whether the resource cost is explicit or implicit
: For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 10 percent annually. Computer programmers cost $..
|
Identify and explain stakeholder organization perspective
: Identify and explain stakeholder organization perspective: Payer (insurers, government payers, and employers); Provider (entities and individuals providing services in the health care system); Patient (consumers).
|
Concerns in the absence of government intervention
: What can we as private individuals do to address these concerns in the absence of government intervention? Are such private solutions likely to be effective?
|
Address animal welfare and environmental concerns
: The article calls for public policy initiatives to address animal welfare and environmental concerns associated with dairy farming in Australia. With reference to economic concepts covered in this course, explain why the government might want to i..
|
Bank prefers liability adjustment over asset adjustment
: Here is the balance sheet of a bank. Required reserves are 10 percent of eposits. Suppose the bank prefers not to change ROE in the face of a liquidity shock. Show that liability adjustment does not reduce the size of the balance sheet. Using a,b,c a..
|