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The following Cobb-Douglas production function is used to describe the output generated by a local government maintenance agency. Q = ?L?1K?2E?3 Where L represents number of worker hours, K represents number of trucks used, and E represents energy used. Statistical estimated generated the following values for ?, ?1, ?2, and ?3. ? = 0.01; ?1 = 0.5, ?2 = 0.4, and ?3 = 0.2 a. What are the production elasticities of demand for labor, capital (trucks) and energy? b. If worker hours (labor) are increased by 10% next year, how much will output (Q) increase? c. If the number of trucks (K) decreases by 10% next year, how much will output (Q) decrease? d. What type of returns to scale is consistent with the above production function?
Evaluate the regional manager's ethical responsibility in this scenario? Describe and support your position with evidence from the text.
What is the amount of profit on the sale and the amount of interest income that Risen should record for the year ended December 31, 2008?
what minimum price would be acceptable? What qualitative factors should Big Al’s considered before agreeing to accept the special order?
How would using the sum-of-the-years'-digits method of depreciation instead of the double-declining-balance method of depreciation affect a gain or loss on the sale of the plant asset?
Provide the entry for the issuance assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50. (Each valuation is on a per share basis and there are ready markets for ..
Calculation of payback period of the project and comment on its liquidity and Use the payback method to calculate how many years it will take for each project to recoup the initial investment, Which project would you consider most liquid?
How many units of each product could it produce in order to maximize operating income
Bobbi and Carl plan to form the BC Partnership, in which each partner will own a 50% interest. Bobbi will contribute appreciated land, and Carl will contribute cash. What is the tax effect of the formation to Bobbi, Carl, and the partnership?
The land was encumbered by a $30,000 mortgage executed two years before. Illustrate what is Vanessa's tax basis in Cook, Inc. after formation?
Identify a decision that has recently been made or will be made in the near future in your organization. Identify two relevant and two non-relevant costs in this decision.
Project K has a cost of $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its cost of capitol is 12 percent. ( Begin By constructing a timeline.) What is the project's payback period (to the closest year)? b) What..
Goumet shop purchased cash registers on april 1 for 12,000 dollars. If this asset has an estimated useful life of four years, what is the book value of the cash registers on may 31?
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