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1. Use the Web to compare international depreciation methods with SL, DB, and the U.S.-imposed MACRS you have learned here. (Hint: Perfor- ming a search using "Depreciation methods in (country name)" is a good start.)
2. Henry has an assignment from his boss at Czech Glass and Wood Sculpting to evaluate depreciation methods for writing off the $200,000 first cost of a newly acquired Trotec CO2 laser system for engraving and cutting. Productive life is 8 years and salvage is estimated at $10,000. Compare the PW of depreciation at 10% per year for DDB-to-SL switching with that for MACRS with n = 7 years. Which is the preferred method?
The radio advertisement costs $600 a month (30 days), find the firm's profit per case of energy drink (hint: consider daily advertisement cost)
What is the profit-maximizing level of output and price for the monopolist? Now suppose that this rm is in a perfectly competitive industry, still facing the same marginal cost curve. (Assume that the average cost curve of this rm always lies below i..
The bar discovers that the customers for this promotion are not its usual clientele. Instead, the customers tend be politicians who consume an amazing amount of liquor.
Decide the demand function and inverse demand function for good X. Indicate whether goods Y and Z are substitutes or complements for good X? Is X an inferior or a normal good? How many units of good X will be purchased when Px=4900?
Find the range of outputs for which the cost function C(q) = f + cq2 is characterized by economies of scale, (ii) diseconomies of scale, and (iii) constant returns to scale. Are there economies of scale if f = 0?
What are governments fiscal policy options for moving the economy out of a recession Speculate on which of these fiscal options might be favored by a person who wants to preserve the size of government and a person who thinks the public sector is ..
Thinking About Thinking
Identify the distribution that is most probable for the following random variables:
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..
As the manager of a 60-unit hotel you know that all units are occupied when you charge $80 a day per unit. Each occupied room costs $8 for service and maintenance a day. In addition there is a fixed cost of $400 a day. You have also observed that for..
market researchers at chrysler estimated the demand for their new chrysler crossfire sports cars as followsqc 1050000
Draw en Edgeworth box and illustrate. Initial endowement allocation, an indifferens curve for each consumer and the contract curve.
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