Decrease in the price of land

Assignment Help Business Economics

Reference no: EM1311805

Q. Suppose the 50 acre lot on which a firm operates its key production facility is located in an area in which the marketplace value of property has fallen on average 20%. The firm owns this land - there is no mortgage. Land is the resource Talk about throughout question #1 but this firm is not in the real estate business. Does this land constitute a variable or a fixed resource in production? Elucidate.

If the firm does not sell the land, Illustrate what impact will this have on the accounting profit the firm reports? (Suppose Historic Cost accounting if necessary. Specifically talk about whether accounting profit will rise, fall, or remain unchanged.) Ones the firm's economic profit? (Again, Talk about whether economic profit will rise, fall, or remain unchanged.) Elucidate the impact the decrease in the price of land will have on this firm's short run cost curves (short run fixed costs, variable costs also total costs). Elucidate your illustration.

Reference no: EM1311805

Questions Cloud

Summarised views of the concept and the solutions : Summarised views of the concept and the solutions found in The Goal to solve or alleviate the company

Find an equation for the change in wavelength : Find an equation for the change in wavelength of a scattered photon by Compton effect.

How much is the second pipe too long : A 11.0g bullet is fired horizontally into a 103g wooden block that is firstly at rest on a frictionless horizontal surface and connected to a spring of constant 154N/m. The bullet becomes embedded in block. If the bullet-block system compresses the s..

Determining scatter plot : Use a scatter plot to determine the relationship between the x values and the y values.

Decrease in the price of land : Impact the decrease in the price of land will have on this firm's short run cost curves (short run fixed costs, variable costs also total costs). Elucidate your illustration.

Computing variance using definitional formula : Compute SS, variance, and standard deviation for following population of N = 7.Scores: 8, 1, 4, 3, 5, 3, and 4. The definitional formula works well with these scores. Use the definitional formula to compute SS.

Find out the acceleration of the puck and the force : A .228g wires are stretched between two points 77.20 cm apart. The tension in the wire is 618N. Find the frequency of the first harmonic. Reply in units of Hz.

Evaluate the overhead variances : Evaluate the overhead variances and Consider the following data for the Rivera Company

Houston medical center : In your opinion, does the Houston Medical Center, in which many hospitals gather, represent an example of perfect competition.

User Account

All Pages