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The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator’s position. The class of service provided by the new equipment is estimated to be at least equal to the present method of operation. To provide telephone service, five operators currently work three shifts per day, 365 days per year. Each operator earns $25,000 per year. Company-paid benefits and overhead are 25% of wages. Money costs 8% after income taxes. Combined federal and state income taxes are 40%. Annual property taxes and maintenance are 2 and 1/2 and 4% of investment, respectively. Depreciation is 15-year straight line. Disregarding inflation, how large an investment in the new equipment can be economically justified by savings obtained by eliminating the present equipment and labor costs? The existing equipment has zero salvage value.
Illustrate what is the quantity of economic investment that has resulted from BBQ's actions
why is it difficult for the government to control and regulate monopolistic enterprises? Give a minimum of two real-world examples from recent history
Identify and then explain the two most important elements of a contract that every manager should know about. Support your answer with an example or rationale.
Average visit per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage c..
In markets economics, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the diference.
Find the net demand curve-facing industry A. Conclude A's optimal price also o/p. How much o/p do the other Industries provide in total.
Explain why savings is unlikely to equal intended investment in the Keynesian model. Equilibrium GDP is $5000 while full employment is $6000. What kind of gap is this? What would the Keynesians say the government should do?
Illustrate what might a more proactive Motorola have done dissimilarly had it correctly perceived the steps its rival Nokia would take.
What are the short-run equilibrium values of the price level, expected price level, output, and unemployment rate. Illustrate what are the values of cyclical unemployment and unanticipated inflation.
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
If the government provides every citizen a hula-hoop then it follows that in economic terms:
Illustrate what would happens to P* if there is a decrease in demand followed by an increase in supply followed by another decrease in demand.
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