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Should New Tech's computer system be replaced this year? The system has a salvage value now of $5000, which will fall to $4000 by the end of the year. The cost of lower productivity linked to the older computer is $3000 this year. New Tech uses an interest rate of 15%. What is the cost advantage of the best system? A potential new system costs $12,000 and has the following salvage values and lost productivity for each year:
Brazil is the world's largest coffee producer. There was a severe drought in Brazil in 2013-2014 that damaged Brazil's coffee crop. The price of coffee beans doubled during the first three months of 2014. Draw and discuss a supply and demand diagram ..
a. What was Zach's accounting profit for the year? b. What was Zach's economic profit for the year? c. Should Zack continue with his cookie business?
If a price-taking firm's production function is given by q = 2vL, what is the profit function in the short-run term? Plz, explain your answers detailly.
Explain in a perfectly competitive market how a firm can make excess profit, incur loss and even shut down in the short run. (Draw graphs also)
Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Now suppose that as a re..
Read Qureshi and Jalbani's (2014) article on globalization, its effects on certain economies, and the concept of "gloco-localization." In your opinion, what should the role of international organizations be in helping to shape the global economy? Do ..
Which of the following statements best describes the concept of producer surplus?
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School
What are the different arguments used by the US and Chinese governments about the renminbi's exchange rate? Do you think that the renminbi is overvalued against the U.S. dollar? After the July 2005 reform, what was China's exchange rate system?
The airline industry, despite continued rapid growth, has been only marginally profitable over the last 50 years. What characteristics of the industry result in the lack of satisfactory profits?
A company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to new net income of $40,000 per year for the next five years. Using SL depreciation, $0 salvage value, and an effective income tax rate o..
A tax cut has just been announced. Congressman Growth states that its effect will be on the supply side, Congress Stable states that its effect will be on the demand side. Demonstrate graphically the effect of the tax cut on the price level and outpu..
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