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The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace the manual switchboard and eliminate the attendant operator's position. The class of service provided by the new equipment is estimated to be at least equal to the present method of operation. To provide the telephone service, five operators work three shifts per day, 365 days per year. Each operator earns $25,000 per year. Company-paid benefits and overhead are 25% of wages. Money costs 8% after income taxes. Combined federal and state income taxes are 40%. Annual property taxes and maintenance are 2.5% and 4% of investment, respectively. Depreciation is 15-year straight line. Disregarding inflation, how large an investment in the new equipment can be economically justified by savings obtained by eliminating the present equipment and labor costs? The existing equipment has zero salvage value.
Consider the following scenario: Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the insects greatly improves flower pollination.
What is the cartel and what prerequisites are required for a cartel to be successful? How do these prerequisites apply to labor unions, OPEC, NCAA, AMA(American Medical Association), and the ABA(American Bar Association)? Do college accredited agenci..
Describe the long-run effects of patent expiration on prices, output and profit in a monopolistic industry.
In a monopolized industry, the demand function has a constant elasticity: q = D(p) = p−ε where ε > 1 is the elasticity of demand. Marginal cost is constant and equal to c. (i) Show that a social planner (or a competitive industry) would yield a total..
Rubber sidewalks made from ground-up tires are said to be environmentally friendly and easier on peoples' knees. Rubber sidewalks, Inc. of Gardena, CA, manufactures the small rubberized squares that are being installed where tree squareroot s, freezi..
Explain how complicated fares and the perception of inequity between two different passengers might hurt the credibility of airlines. Include as much detail as possible in your answer, but focus your answer on who earns frequent flyer rewards, and ho..
What are some of the tools you can use to tune or correct a Linux filesystem?
You are an assistant to a senator who chairs an ad hoe committee on reforming taxes o telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, te..
Explain to your non-economist friends what this means, including considerations regarding the measurement of unemployment rates that can underestimate it. As a group of economic advisors in the campaign of an unnamed presidential candidate, what poli..
1: Solve the equations to determine equilibrium price. 2: Now determine equilibrium quantity.
Derive the Iso-quant curve for this firm. Derive the Expansion path for the firm if w=1 and r=3. Derive the long run cost function if w=1 and r=3. What is the optimal capital and labor if you want to produce 500 units of output?
RTC Financial Inc., in Essex County is considering the following two investments: the first investment pays 1% interest per month, compounded monthly, while the second pays 3% interest per 3 months, compounded quarterly. What is the effective quarter..
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