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Calculate the unit cost of a product if the material cost is $3 per unit, labor is $5 per unit, and overhead is calculated at a rate of 150% of labor. The first cost of the equipment needed for production is $50,000, with a life of 12 years and a salvage value of $4,000. Five thousand units per year are required. ROI is 15%. Annual operating costs of $1,000 per year are also required. What is the unit cost?
Assume that the economy is starting at a long-run equilibrium. Suppose firms become very optimistic about business conditions and invest heavily in new capital equipment. Assume there is no change in the long-run aggregate supply curve. What is the e..
In general, explain the connection between a Happiness or Utility function that exhibits Diminishing Marginal Utility or Happiness, on the one hand, and risk-aversion, on the other.
The global movement toward generally freer trade
The people who support restricted international trade say that
Illustrate what would neoclassical economists and new dissidents have to say about former Bush Administration's efforts to push forth a Free Trade of Americas with our South American, Central American and North American neighbours.
Rational expectations imply that households and firms are forward looking. What does that say about the importance of a short-run downturn in demand for firm decisions? Explain why firms might hold excess labor and capital during a recession. Explain..
Measles has become an epidemic here in Orange County. About 1 in 1000 people will die after contracting the disease. Because this is such a high rate, health officials in Orange County would be well advised to pay for anyone to get a vaccination.
When one person saves, that person's wealth is increased, meaning that he or she can consume more in future. But when everyone saves, everyone's income falls, meaning that everyone must consume less today. Explain this seeming contradiction.
Consider a farmer who can either plant or market/consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from 2 ears of corn, he gets 4 ears of corn at harvest. Assume he starts off..
Find the present-value equivalent to the following geometrically increasing series of payments.
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $150,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..
Annual disbursements for maintenance of critical heavily used equipment will be $25,000 for the first 10 years, and then $35,000 into infinity. If interest is 15%, what is the capitalized cost?
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