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A grocery distribution center is considering whether to invest in RFID or bar code technology to track its inventory within the warehouse and truck loading operations. The useful life of the RFID and bar code devices is projected to be 5 years with minimal or zero salvage value. The bar code investment cost is $100,000 and can be expected to save at least $50,000 in product theft and lost items annually. The RFID system is estimated to cost $200,000 and will save $30,000 the first year, with an increase of $15,000 annually after the first year. For a 5% MARR, should the managerinvest in the RFID system or the bar code system? Analyze incrementally using rate of return. Contributed by Oliver Hedgepeth, University of Alaska Anchorage.
When illegal immigrants come to the U.S. from Mexico, does their act of moving here to work promote Purchasing Power Parity? Are they performing arbitrage in some market? Explain.
Globalization impacts virtually every industry. Select 3 industries and list for each a couple of ways in which they are impacted by globalization?
How your organization's production function is related to its marginal product of labor.
Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2. Suppose the fi..
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments i..
Should there be greater government regulation with respect to selling to vulnerable consumers? Be sure to support your discussion question response with evidence from online references.
A company is considering a proposed new plant that would increase productive capacity. Which of the following statements is CORRECT?
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%. Use one graph to show the..
How can you justify existence of government-granted monopolies for such public utilities as local telephone service, natural gas.
Assume that an economist states that she believes the Federal Reserve should ensure that nominal GDP grows by 5% every year and that is all the Federal Reserve should do. Which of the following is true about this economist?
Assume that demand for a commodity is represented by the equation formula p= 90-2Qd Supply is represented by the equation formula p=-5+3Qs where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Using the equilibriu..
An article in the Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the chain owns and manages itself. Why would Marriott w..
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