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Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Records for the current year show an average of 5 tests per hour performed on the Sunny Tune System (STS), and 9 tests per hour on a new machine, the Car Care Tower (CCT). The STS is leased for $25,000 per month, and the CCT is leased at a rate of $45,000 per month. On average, each machine is operated 25 eight-hour days per month. Labor and all other costs are fixed, and tests are conducted at a price of $26 each.
A) Does company usage reflect an optimal mix of testing equipment?
B) Determine the marginal revenue products for the STS and for the CCT employed by Smokey’s Garage, Inc.
C) At a price of $26 per test should the company lease more machines?
Assume you have 4000 in a savings account at the beginning of the year price level is 100 the account pays 7% interest annually. if the price level is equal to 115 at the end of the year, the real value of your saving is?
According to the terms of the contract, the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
The monetary return to an additional year of experience will be higher for workers in the primary sector of the labor market than for those in the secondary sector. A union’s contract zone will be wider the more inelastic is the labor demand curve.
Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
the demand for Internet advertising was declining at the similar time which the number of Internet sites accepting advertising was increasing
Assume that there are 10 million workers in Canada also that each of these workers can manufacture
What has been the effect of longtime rent control in New York City? Why were controls initially imposed and why do they persist to this day?
What happens to an organization when it does not “adapt and learn”? Bureaucracy undermines “new thinking”, discourages disagreeing, misallocates power, it is an enemy of “resilience”, the government, will “stall” if it does not “adapt and learn”.
Although most people agree that the government’s role in the free market economy should be limited, the degree of appropriate government involvement is contested
Future Economic Impact: At present there are a few notable industry leaders that have strong opinions on AI, its future, and its impact on humanity. Explain these opinions and critically critique them.
By how much might the quantity of labor supplied decrease if the tax elasticity of supply were 0.20 and the marginal tax rate increased from 35 to 39 percent?
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