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Eddie is a production engineer for a major supplier of component parts for cars. He has determined that a robot can be installed on the production line to replace one employee. The employee earns $20 per and benefits worth $8 per hour for a total annual cost of $58,240 this year. Eddie estimates this cost will increase 6% each year. The robot will cost $16,500 to operate the first year with costs increasing by $1500 each year. The firm uses an interest rate of 15% and a 10-year planning horizon. The robot costs $75000 installed and will have a salvage value of $5000 after 10 years. Should Eddie recommend that purchase of the robot?
Ellucidate why is it that wages are not dropping instead they are inching upward on a year to year basis.
Suppose if there were no tax profits and behavior is governed through rational self interest, would people give to charitable institutions? use economic principles to describe.
Illustrate the price elasticity of demand at the equilibrium price and quantity.What is the price elasticity of supply at the equilibrium price and quantity.
Illustrate one half the present value of a $30,000 annuity for 30 years when discounted at 4 percent.
According to Jeffrey Sachs, Illustrate kinds of development assistance can make a difference in Africa, and what role does he anticipate for the developed world.
One of major political developments of last many decades is the increasing size and economic or monetary integration of the European Union. Determine what effect do you think this will have on international trade between nations?
A company yearly sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ,
Describe autarky equilibrium if all the English always consume equal quantities of wine and cloth. Describe autarky equilibrium if Portugal always consumes equal quantities of wine and cloth.
If the price of 1 pound of cereals is $10 and the price of a sword is $100, what is the wage rate paid to Hobbits in the Shire? How many Hobbits work in the cereal sector? In sword sector? Because of the War of the Ring, the price of a sword went ..
Suppose that we are selling bottles of CocaCola in a vending machine. Currently, we charge $1.50 per bottle and have discovered through trial-and error that if we increase the price by 1 percent,
Describe events that might lead to a disequilibrium in the market for gasoline.
In 1981, the United State negotiated an contract with the Japanese. The contract called for Japanese auto companies to limit exports to the United State.
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