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According to the depreciation rates used by the company and described in the production cost report, if a company adds 50 new workstations at a cost of $75,000 each and also spends $10 million for an addition to its assembly plant to accommodate the new workstations when its annual depreciation costs will rise by.
Define Indifference Curve and what are the main properties of Indifference Curve? By using Indifference Curve analysis explain how the consumer attains maximum level of satisfaction?
Calculate price, quantity and social surplus for the initial state and each policy.
Consider the production function when needed for the following questions. Wage is $20 and rent is $10. Justify your answers. Labor is no longer fixed. Minimize expenditure to produce 40 units. Using a-d above, graph your results along with the short-..
Suppose your business is currently employing 750 workers, the only variable input, at a wage rate of $48. The average product of labor is 96, the last worker added 6 units to total output, and total fixed cost is $12,000. What is Average Variable Cos..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..
You have just been hired by a company as an economist and strategic planner. Your company has asked you to generate a report explaining the consequences of the market structure in which the company operates. Assume that the market structure is an oli..
How much money would be accumulated in 10 years for a deposit of $10,000 made at the end-of-year zero if the account earned interest at 6% per year for the first three years, 9% per year for the next four years, and 7% per year for the last three yea..
Goodspeed Automobiles manufactures 100 disc brake cylinders. At this output level, its marginal revenue is equal to its marginal cost. If the revenue per unit of output is $500 and the cost per unit is $350, its profit is:
Suppose that the Bank of Canada unexpectedly decreases the money supply. What will happen to unemployment in the short run? What will happen to unemployment in the long run?
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surf..
Jim produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. What is Jim's contribution to GDP? What are Jim's profits?
The initial cost of a pickup truck is $12,859 and will have a salvage value of $4,027 after five years. Maintenance is estimated to be a uniform gradient amount of $181 per year, with zero dollar for first year maintenance. The operation cost is esti..
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