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A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end of its 6-year depreciable life. Compute the depreciation schedule for this asset by both SOYD depreciation and DDB depreciation.
Derive also graph the MC function. Conclude the cheapest way to produce 20 units. Conclude the cheapest way to produce 12 units.
In Krugman and Obstfeld's International Economics, 8e, Chapter 16, an involved argument is given showing that a permanent fiscal expansion will not affect output even in the short run. It seems to me that this is a saddle point stability argument in ..
The rise in the US trade deficit during the 1980s was due largely to the rise in the US budget deficit. On the other hand, the popular press sometimes claims that the increased trade deficit resulted from a decline in the quality of US products relat..
An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sal..
1. The population of the world in 2003 was 6.314 billion. It grew between 1975 and 2003 at an annual rate of 1.6%. Assume that it continues to grow at this rate. a. Compute the doubling time. (Understand the Rule of 72)
The tragedy of the commons is an economics theory by Garrett Hardin, according to which individuals, acting independently and rationally according to each one's self-interest, behave contrary to the whole group's long-term best interests by depleting..
Robert has a passion for making ice cream. Assume that ice cream parlors have a monopolistic competition market structure. Between the local Amy\'s, Cold Stone Creamery, Marble Slab, Ben & Jerry\'s and Baskin Robbins, he has an uphill battle to break..
If you want to increase ROE for a bank, but ROA is fixed, what could be done to do this? Would you increase the assets in the equity multiplier or decrease equity capital in the equity multiplier?
Consider a monopolistic rm that can produce any quantity of its product at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. Its products could be sold in two different markets: Europe and U.S. What quantity should the firm s..
Explain the concepts of impatience and internal discount rate (of an individual). (Hint: the example of a depletable resource may be useful for handling this task.) To determine the intertemporal consumption decision of an individual the concept of d..
According to the principle of monetary neutrality: If the Fed increased the supply of money, and velocity remains unchanged, according to the quantity equation: The quantity theory of money states that: Suppose the value of goods and services produce..
q.suppose you know that chateau mulls mrt of wine for garbage was 21 it would require the creation of 2 additional bags
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