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A corporation is considering buying a mediumsized computer that will eliminate a task that must be performed three shifts per day, 7 days per week, except for one 8-hour shift per week when the operation is shut down for maintenance. At present four people are needed to perform the day and night tasks. Thus the computer will replace four employees. Each employee costs the company $32,000 per year ($24,000 in direct wages plus $8000 per year in other company employee costs). It will cost $18,000 per year to maintain and operate the computer. The computer will be depreciated by sum-of-years'-digits depreciation using a 6-year depreciable life, at which time it will be assumed to have zero salvage value. The corporation has a combined federal and state incremental tax rate of 50%. If the firm wants a 15% rate of return, after considering both state and federal income taxes, how much can it afford to pay for the computer?
The inverse market demand for fax paper is given by P=400-2Q. There are two firms who produce fax paper. Each firm has a unit cost of production equal to 40, and they compete in the market in quantities. Show how to derive the Cournot-Nash equilibriu..
q.need 800 words minimum only original work accepted.consider the following examples of economic activitiespurchasing
Graph and explain: If you do not know how to use the computer to do this, do it by hand then scan it and send it by e-mail. You can use any software package you like. It is January 2015 and the gas price is dropping dramatically. I just saw is at Cos..
The typical firm in a monopolistically competitive market does not earn long-run economic profit. Does that fact make it economically efficient? Explain why the firm will not able to earn long-run economic profit.
Which of the conditions fits the Canadian treatment of foreign corporate incomes best? equal?
Illustrate what new decision will you make regarding production levels and pricing for your Widget facility.
q.alchemy l is the price leader in the poly-glue market. all ten other manufacturers follower f firms sell poly-glue at
Compare private sector financial accounting with accounting for government and not-for-profit organizations.
Suppose that demand for a product manufactured in your state is Q = 1,200 - 4P and the supply is Q = 2P. Furthermore, suppose that the Marginal External Cost or damage associated with production of this product is $12 per unit. How many more units of..
Firm K can earn $35 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns $26 million if firm L responds with strategy P and..
Consider a model of three-period – lived individuals. Suppose the two-period real rate of return on capital is X = 1. 44, the rate of population growth is n = 1. 1, and the rate of fiat money creation is z = 1. 2. Find the following net rate for both..
q1. why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in
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