Other Economics Answers

Assume that you plan to take a housing loan with a tenor of 20 year. The loan has to be repaid in equal monthly installments. Considering that the loan amount is Rs. 50 lakhs and the interest rate on loan is 9% p.a., what would be the equated monthly installment (EMI)?

An equipment costing 5, 000, 000 can be sold for 1, 000, 000 after it’s useful life of five years. What will be the book value of the said equipment if the company plans to sell it the end of 3 years? Use the sum of years digit method.

An asset has it original value of 120, 000 pesos has a salvage value of 3% of its original value in 12 years. What is the asset’s value after 8 years of use? Use straight line depreciation method.

Equipment costing 2,000,000 with a 200,000 annual operation and maintenance cost. Determine the capitalized cost if money is worth 20% per year.

HOW TO CALCULATE MANUFACTURING OVERHEAD

1.     Below is the weekly output of a production process, with data for workers and material inputs. The standard inventory value of the output is GH ₵125 per unit. Overhead is charged weekly at the rate of GH ₵1500 plus 0.5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per running foot. What is the average multi-factor productivity for this process?

WEEK OUTPUT #WORKERS MATERIALS (ft)

1 412 6 2840

2 364 5 2550

3 392 5 2720

4 408 6 2790

A government conducts a cost-benefit analysis into the construction of a new high-speed railway network. The analysis reveals the following information. If it is to build the railway network, the government requires that the net social benefit is more than US$20 billion. What must the external costs be to satisfy the government?

14.6

Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by

Q₁ = 55-P₁,

and the demand curve in the second market is given by

Q₂=70-2P₂.

a. If the monopolist can maintain the separation between the two markets, what level of output should be produced in each market, and what price will prevail in each market? What are total profits in this situation?

b. How would your answer change if it costs demanders only $5 to transport goods between the two markets? What would be

the monopolist's new profit level in this situation?

Suppose E(X) = 5 and EIX(X-1)] = 27.5. What is

a. E(X)? [Hint: E[X(X - 1)] = E[X² - X] =

E(X²) - E(X)]?

b. V(X)?

c. The general relationship among the quantities E(X), EIX(X-1)], and V(X)?

Compute the following binomial probabilities directly from the formula for b(x; n, p): b. b(5; 8, .6)

a. b(3: 8..35)

c. P(3 ≤X ≤ 5) when n = 7 and p = .6 d. P(1X) when n = 9 and p = 1