### Declining balance depreciation method

Assignment Help Macroeconomics
##### Reference no: EM131049100

1. Suppose Wave detergent is sold in a monopolistically competitive market. If the price of Wavedetergent is currently \$6 and the ATC is \$4, in the long-run we expect

a. The demand curve for Wave to shift to the left
b. The demand curve for Wave to shift to the right
c. The producers of Wave to go out of business
d. The producers of Wave to earn economic profits greater than zero
e. The producers of Wave to earn economic losses

2. In the long run, there will be no unexploited scale economies (excess capacity) in

a. competitive markets
b. monopolistically competitive markets
c. oligopoly markets
d. monopoly markets

3. A perfectly price-discriminating monopolist is able to

a. exercise illegal preferences regarding the race and/or gender of its employees.
b. maximize profit and produce a socially-optimal level of output.
c. maximize profit, but not produce a socially-optimal level of output.
d. produce a socially-optimal level of output, but not maximize profit.

#### Questions Cloud

 What is the discount rate : Consider a 30 year series of cash flows that pays \$1,000 at the end of each year, and has present value of \$12,500. What is the discount rate? (One way, but by no means the only way, to solve this problem is to use the Solver in a Microsoft Excel s.. Original assumption that all projects have average risk : The managers of United Medtronics are evaluating the following four projects for the coming budget period. The firm's corporate cost of capital is 14 percent. Project Cost IRR. What is the firm's optimal capital budget? Return to the original assumpt.. High-tech equipment to produce specialized aluminum products : ALUM, Inc. uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs \$1,520,000 to purchase plus an additional \$48,000 a year to operate. The machines have a five-year life after which they .. What are the visible effects of omitting these frames : Use mpeg play to play an MPEG-encoded video. Experiment with options, particularly -nob and -nop, which are used to omit the B and P frames, respectively, from the stream. Declining balance depreciation method : The net annual value added that can be attributed to this machine is constant over eight years and a mounts to \$15,000. An effective income tax-rate of 40% is used by the company, and the before-tax MARR equals 25% per year. Use 150% Declining Bal.. Depreciated straight-line to zero over four-year tax life : The Market Place is considering a new four-year expansion project that requires an initial fixed asset investment of \$2.8 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will have a .. Calculate NPV and IRR for each machine : The MIT Whitehead Institute must choose between two cDNA microarray machines to expand their high-throughput genomic laboratory. Both of these machines have the same function, and the firm will only choose on vendor from which to purchase their machi.. Calculate person federal tax liability if filing status : Suppose an individual’s income for 2015 consisted of \$42,000 in wages, \$200 of qualified dividends, \$500 in bank interest, and a \$1,200 gain from the sale of stock purchased in 2010 and sold in 2015. Calculate this person’s federal tax liability if t.. Production companies in a federal district court : FACTS Spectrum Stores, Inc., and other U.S. gasoline retailers (the plaintiffs) filed a suit against Citgo Petroleum Corporation and other oil production companies in a federal district court.

### Write a Review

#### Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

#### In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

#### Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

#### Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

#### Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

#### Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

#### Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

#### Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

#### Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

#### Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

#### Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

#### Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?