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Business equipment was purchased for $100,000. It's depreciated using MACRS, half-year convention, 7-year life property. At the end of year 5 what is its tax basis? $77,690. $100,000. $0. $22,310.
In what situation should a firm offer "price matching guarantee"? Will such "price matching guarantee" increase or reduce profits? Explain. Classical supply-and-demand analysis suggests that when the demand for a product increases, prices tend to go ..
Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers, and the ..
The game ends when the stack runs out or one of the players takes two notes (whichever comes first). Both players keep illustrate what they have taken to that point.
Why is the cost of health care so high in the U.S. and the U.S. does not have the best system. If a person has co-pay health insurance what does he/she base his/her purchase decision on, the real price or what actually comes from his/her pocket? Does..
Assuming that each choice results in the same production costs once installed, under what choice is the firm likely to encounter a greater likelihood that its competitors will also expand their capacities?
Write the total and marginal revenue functions.
If you want the portfolio to have an expected return equal to that of the market, explain how much should you invest in the risk-free security.
For the closed-economy, one-period model, suppose that U(C,I) = In C + βl, and F(K,N)= ZK^(a)N^(1-a), where β>0 and 0
Think about a firm that you have done business with recently. What industry does this firm belong to For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under
Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level.
As the mayor of a local town, I have the power to repeal workplace safety laws. How would repealing all workplace safety laws affect the wages of construction workers building the local school?
One year of life is then worth a little less than $67,000. Actually, if you are talking of Quality adjusted life year, your last calendar year might be worth considerably less than one quality adjusted life year ignoring that. They can’t spend more t..
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