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A surface mount PCB placement/soldering line is to be installed for $1.6 million. It will have a salvage value of $100,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment (adjusted basis) during each year of the asset’s life. a) Use straight line depreciation b) Use Sum of the Years Digits depreciation
How many units of x1 and x2 will the firm use to produce y units of the output? What is the cost of poducing y units of the output for this firm?
Illustrate which competitor is better positioned to take advantage of this opportunity. Assuming that neither company can segment the market.
Some oligopolies use a form of implicit cooperation called price leadership, which is legal in the US. Why do you think these firms try to engage in this practice? And why does price leadership often fail?
The budget deficit of the government of Lyria, an open economy, has persistently remained higher than 6 percent of GDP. Murphy Smith, a banker, feels that a high budget deficit is detrimental to economic growth. In his opinion, there should be a law ..
Please explain the difference between the collusive and competitive oligopoly models and explain the role that the number of firms and barriers to entry play in determining how real-world oligopolistic industries behave.
If you were the Prime Minister of the United Kingdom, in terms of cultural identities. What do citizens of your country (united kingdom) have in common with the migrants? Is there pressure (economic, political, religious) on your to accept migrants i..
What other economic factors are affected when taxes are raised or lowered, and how are they affected? Should the government increase tax rates on everyone as a way to equalize incomes and wealth?
Elucidate what is the marginal opportunity cost of 1,000 garments of clothing in the range between points B and C.
Assume that the state government is interested in subsidizing the local production of steel. The current price of steel is $1600 per ton and the government wants to provide a subsidy of $100 per ton. Use a diagram to indicate the pre-subsidy situatio..
The theory of new Keynesian inflation dynamics suggests that a fall in aggregate demand would
Describe the impact of a payroll tax on wages and employment in a competitive industry. Why is part of the tax shifted to workers? What is the deadweight loss of the payroll tax?
When a restaurant stays open for lunch service even though few customers patronize the restaurant for lunch, What are the principles is (are) best demonstrated.
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