Calculate the user cost of capital of a machine

Assignment Help Microeconomics

Reference no: EM131806217

Question: 1. The Widget Company has the following production function. Number of Workers 0 1 2 3 4 5 Number of Cases produced 0 9 17 24 30 35 If widgets sell for $6 each and the wage rate is $33, how many workers will the company hire?

2. Zowie! Surfboards has the following production function. Number of Workers 1 2 3 4 5 Number of Surfboards Produced 12 21 29 36 42 If surfboards sell for $30 and the nominal wage rate is $200, how many workers should the firm employ?

3. The marginal product of labor (measured in units of output) for Expando Corp. is given by MPN = A(400 - N) where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $18?

4. The marginal product of labor (measured in units of output) for Relient Corp. is given by MPN = A(200 - N) where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $30?

5. What is the participation rate if there are 125 million people in the labor force, 100 million people employed, and 25 million not in the labor force?

6. Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus of $1000 and he spent $500 of it, saving the other $500. What was his marginal propensity to consume?

7. Calculate the user cost of capital of a machine that costs $5000 and depreciates at a rate of 25%, when the nominal interest rate is 10% and the expected inflation rate is 5%.

Reference no: EM131806217

Questions Cloud

Estimate a cost formula for maintenance : Using the high-low method, estimate a cost formula for maintenance where X represents the number of direct-labor hours

Form of social media : Do you feel if someone utilizes a form of social media to outline or address an HR or voice a disagreement with their company should be reprimanded for doing so

Prepare a bank reconciliation using band bs restaurant : The bank account as a control device helps to protect cash. Prepare a bank reconciliation using B & B's Restaurant Supply Inc.'s information for August 31.

Financial accounting and managerial accounting : Differentiate between financial accounting and managerial accounting with an appropriate example.

Calculate the user cost of capital of a machine : Calculate the user cost of capital of a machine that costs $5000 and depreciates at a rate of 25%, when the nominal interest rate is 10% and the expected.

How blooms taxonomy can be integrated into the elementary : One challenge elementary English language arts teachers face is determining how to ask questions and elicit higher order thinking from their young students.

Prepare the bank reconciliation and record cash adjustments : Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits only once per week

Design questions that encourage critical and higher-thinking : The purpose of this assignment is to design questions that encourage critical and higher-order thinking.

Write about statement of cash flows : Write about Statement of Cash Flows. You will also be required to include the Income Statement, Balance Sheet and Cash Flow Statement as an attachment.

User Account

All Pages