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A certain corn mill decided to sell its old engine which had been in use for 5 years costing Php7,200 when new. The average cost per year thus far has been Php4,200. The replacement costing Php12,000 has an estimated life of 15 years, and an estimated annual operating expense 20% lower than that of the old engine. If interest is 5% and using straight-line depreciation, how much must the old engine be sold if its assumed working life is 15 years and its assumed salvage value is Php500? Actual total cost for the new engine considering depreciation, interest and operation is Php 347 less than that of the old engine. Use straight-line depreciation.
What would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?
q1. when the firms in the industry are just able to cover their cost of production economic profit is 0. consequently
Using the same product example above, analyzing how the risk tolerance factors play in supplying the good or service and how this should influence management’s decisions.
First determine the tax issue. Then research the issue and determine your conclusion. Fred Fisher is a licensed scuba diver who lives in Key Largo. He is employed full-time as an engineer. Five years ago he had been employed as a professional diver ..
1. Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations?
An industry which has no barriers to entry, no product promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:
At some levels of output Acme's average total costs are less than Generic's, but at some levels of output Generic's average costs are less than Acme's.
A company can rent a machine for an all-inclusive rate of $125 per hour and on average makes use of such a machine for 1600 hours per year.
Alchem (L) is the price leader in the polyglue market. All four other manufacturers [follower(F) firms] sell polyglue at the same price as Alchem. Alchem allows the other firms to sell as much as they wish at the established price and supplies the re..
When a industry's marginal revenue product equals the income rate, marginal revenue also equals marginal cost.
1.Do you feel managed care plans are the solution to the health care crisis in the United States? Support your response.
Discuss the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present.
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