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TELCO Corp. has leased some industrial land near its plant. It is building a small warehouse on the site at a cost of $250,000. The building will be ready for use January 1. The lease will expire 15 years after the building is occupied. The warehouse will belong at that time to the landowner, with the result that there will be no salvage value to TELCO. The warehouse is to be depreciated either by MACRS or SOYD depreciation. If 10% interest is appropriate, which depreciation method should be selected?
Two economists, Lynch and Wyatt, are discussing the currently high unemployment rate. Lynch says that something ought to be done quickly since the economy may not be able to restore itself to full employment. Wyatt says that it is better to take a "h..
John Maynard Keynes said in response to a question, "Have you ever seen anything like this [Great Depression] before in history?
A manufacturing plant has the capacity to produce 1,000,000 widgets per year. Each sells for $20. The variable cost to produce each widget is $5 per widget. Annual operating costs are fixed regardless of production volume, and are $2,000,000 per year..
The long-run total cost function for a firm producing skateboards is: TC = q^2 - 45q^2 + 900q, where q is the number of skateboards per week. MC = 3q^2 - 90q + 900. Find the average cost function and find the output level that minimize the average to..
A manufacturer has been selling 1000 television sets a week at $350 each. A market survey indicates that for each $10 rebate offered to the buyer, the number of sets sold will increase by 100 per week. Round your answers to the nearest dollar. Find t..
Write pseudocode that describes the process of guessing a number between 1 and 100. After each guess, you should tell the player
Quantity effect of a specific tax. A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produced will be from such a tax. The proposed specific tax i..
You are purchasing a 6-year discount bond with a face value of 441. At the time of purchase it had an interest rate of 3%. Calculate the price of the bond that you are purchasing. Please express your answer in dollars to the penny.
Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. What happens to the wage of skill..
A numerical application of Okun’s law Consider an economy that initially has a labor force of 2000 workers. Of these workers, 1900 are employed and each works 40 hours a week. Ten units of output are produced by each hour of labor. What is total numb..
Hemesia, a developed economy, has been experiencing low growth in output with a high rate of unemployment for more than a year. Geoffrey Miller and Arthur Davis, are discussing the relevant expansionary policies that can be taken by the central bank ..
If Jud offered the Krauses one price and inadvertently typed a different, higher price into the contract, can Jud be held to the typewritten amount?
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