User Account

All Pages

Install the machine and ignoring improvement

Assignment Help Microeconomics
Reference no: EM133217560

1. A firm could install an improved piece of machinery at cost of $20,000 (has to be paid immediately. In 2022). This machine will save $1,000 every year starting from 2023.

a. Would the firm install the machine if the interest rate is 4%? Explain.

b. Would the firm install the machine if the interest rate is 8%? Explain.

c. At what interest rate is the firm indifferent between install the machine and ignoring this improvement? Explain.

Reference no: EM133217560

Questions Cloud

Comment on measuring interprofessional collaboration : Comment on Measuring Interprofessional Collaboration in Healthcare Discussion Response - This was my first introduction to the "SWOT Analysis"
Example of process in OSS : Give an example of a program and an example of process in OSS?
Substitutability of products of potential competitor firm : 1. This Discussion Forum requires you to listen to this Planet Money podcast and then address the prompt below.
What should you set as cache hit ratio : What should you set as the cache hit ratio to achieve this average access time?
Install the machine and ignoring improvement : 1. A firm could install an improved piece of machinery at cost of $20,000 (has to be paid immediately. In 2022). This machine will save $1,000 every year starti
Wireless transmission errors and security concerns : What are the wireless transmission errors and security concerns? Discuss at least 2 advantages and disadvantages of driverless cars.
What is the law of diminishing marginal utility : 1) What is the law of diminishing marginal utility? 2) How can you connect the three factors in the article with this theory?
Install the machine and ignoring improvement : A firm could install an improved piece of machinery at cost of $20,000 (has to be paid immediately. In 2022). This machine will save $1,000 every year starting
What is the maturity for the three bond groups : December is approaching, and Mr. Thrift is anticipating a year end bonus of $10,000. Mr. Thrift and his wife , Penny, agree to invest the money rather than spen

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd