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The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator’s position. The class of service provided by the new equipment is estimated to be at least equal to the present method of operation. To provide telephone service, five operators currently work three shifts per day, 365 days per year. Each operator earns $25,000 per year. Company-paid benefits and overhead are 25% of wages. Money costs 8% after income taxes. Combined federal and state income taxes are 40%. Annual property taxes and maintenance are 2 and 1/2 and 4% of investment, respectively. Depreciation is 15-year straight line. Disregarding inflation, how large an investment in the new equipment can be economically justified by savings obtained by eliminating the present equipment and labor costs? The existing equipment has zero salvage value.
Compute the company's total costs, and graph the revenue curve and the total cost curve. Do the curves have the shape you expect. Over what range of production is the company making pro ts.
assume that the yearly capital cost is 10% of the total investment. Elucidate at what production quantity ?these two investment are opportunities.
The perfectly competitive DVD copying industry is composed of many firms who can copy five DVDs per day at an average cost of $10 per DVD. Each firm must also pay a royalty to film studios, and the per-film royalty rate (r) is an increasing functions..
q.paolo currently has 100000 invested in bonds that earn him 10 percent interest per year. he wants to open a pizza
Describe the types of economic development programs that are being conducted in your community. Analyze the actors involved in the economic development programs.
Your weekly costs to producing q units are given by the following equation: C(q)=7+10q+3.5q2 +q3. With this technology, AC is minimized at approximately q = 1.11. What is the long-run equilibrium price of in this market, given that there are no barri..
All licensed drivers are required by law to purchase a minimum level of auto and motorcycle insurance (well, if they own either of the two). However, the vast majority choose to buy much more insurance than the required minimum. It’s also true that m..
Discuss why silence can be an effective response to a request for a last-minute concession and when the nickel-and-diming approach can be utilized most effectively.
llustrate what is maximum amount it would be worth to shareholders to elicit high CEO effort all time rather than low CEO effort all time.
Was there anything that you learned that could be applied to career development or your potential job interviews with the use of a portfolio?
Write the total and marginal revenue functions.
The NCAA has often been called an “incidental cartel. ”What is an “incidental cartel?”How has the NCAA exercised its cartel power? Give two distinct examples.
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