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A CNC machine was purchased for $120,000 and has a five-year depreciable life. The shipping and handling cost were $15,000. The annual operational cost of the system is $10,000. The estimated salvage of the machine is $20,000 at the end of five years. Tabulate the annual (SL) depreciation amounts and book value of the machine at the end of each year.
Assume that an entrepreneur's short-run total cost function is C=(q^3)- (10q^3)+17q+66. Determine the output level at which he maximizes profit if p=5. Compute for the output elasticity of cost at this output.
he world real interest rate r* is 0.75%. For the following questions, use the conditions associated with the general monetary model. Treat Mexico as the home country and define the exchange rate as Mexican pesos per Canadian dollar, Epeso/C$
A consumer, D Carroll, spends all of his income on 2 goods X and Y. The 2 goods are both normal but are not complementary. The price of good X is reduced but the price of good Y is unchanged. The consumer continues to spend all of his income on th..
The state Medicaid agency has set a rate of $5.50 per visit for all Medicaid enrollees who visit a physician. Each physician also has private paying patients. The demand curve for each physician can be characterized as follows
the production function: Q=5KL the assembly machines, K, costs $10,000 a week, while labor teams, L, cost $5000 per week. your plant has 4 assembly machines In the short run, ____ labor teams are required to produce 360 widgets.
State what is its distribution under the null and why and explain the conditions under which you would reject H0
A firm wants to raise $100,000,000 through a new issue of common stock at a market price of $50 per share. The flotation costs are 5.8%. How many shares of stock must the firm issue and what is the total flotation costs
For the declining-balance method, Wang Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2009, 400; 2010, 4,500; and 2011, 5,000.
Suppose that an individual with income I cares about two goods, X and Y. The price of the two goods is Px and Py. The individual has the following utility function: U(X,Y) = X(2+Y)
A factory produces output (Q) using capital (K) and labor (L) according to the production function Y(K,L)=K^1/5*L^4/5 Let r denote the price per unit capital, and w denote the price per unit labor, so that the total expenditure on these factors is ..
You have been hired to predict the effects of increasing the price of iTunes songs by 10% from .99 cents to $1.09. You are interested in the effects of the price hike on the number of songs downloaded legally from itunes the number of songs downlo..
A security system costs $ 17000, and annual maintenance is $ 950. After 5 years, the salvage value of the system is $ 3000. The interest rate is 8 %. Determine the equivalent annual cost.
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