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A small company is using the unit-of-production method for determining depreciation costs. The original value of the property is $110,000. It is estimated that the company can produce 11,000 units before the equipment will have a salvage or scrap value of zero; that is, the depreciation cost per unit produced is $10. The equipment produces 200 units during the first year, and the production rate is doubled each year for the first 4 years. The production rate obtained in the fourth year is then held constant until the value of the equipment is paid off. What would have been the annual depreciation cost if the straight-line method based on this same time period had been used?


You win $100 in a basketball pool. You have a choice between spending the money now and putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the $100 now


Ahmed is a football producer who is interested in knowing that at which level of production his profit would be maximized. If following is the production function determine at which quantity the profits would be maximized.


Y=10+10X+10X2

The government has lowered taxes on cattle ranchers the supply of beef will


What would be the implication of the imposition on aggregate demand and real GDP (Use appropriate diagram). 


Discuss the source you would utilise to increase the pool of potential suppliers who be invited to tender


Explain to the CEO the costs the organisation may be incurring for sourcing from international suppliers


Describe the major categories of supply base risks


if the percentage change in price is 12 percent and the percentage change quantity demanded is 7 percent, what is the elasticity of demand?


Prices coordinate the decisions of pro-


ducers and consumers by


a. increasing variability in supply and

demand.


b. decreasing variability in supply and

demand.


c. limiting the impact of supply and

demand.


d. balancing the forces of supply and

demand.


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