Economics Answers

If the unit variable cost for each computer is $350 and the manufacturer has fixed costs totaling $2 million, how many computers must this manufacturer sell to break even? How many must it sell to realize a profit of $50 million?

With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour hours as your quantity variable

how the supply of factors of production influences which goods and services are produced in different countries

A steel works can cut its NOx emissions from their current level of 60 tonnes
a year according to the MAC curve
MAC A = + 40 5
; where MAC = marginal cost
of NOx abatement ($/tonne) and A = level of abatement undertaken (tonnes).
A NOx emissions tax of $ 200 per tonne is introduced. How many tonnes of
NOx abatement will the steel works undertake when the tax is introduced ?
A 34 tonnes B 28 tonnes C 32 tonnes D 6 tonnes

Suppose that a firm produces 200,000 units a year and sells them all for RM10 each.
The explicit costs of production are RM1, 500,000 and the implicit costs of production
are RM300, 000. Calculate the firm’s accounting profit and economic profit

Envision that you have served as business manager of Media World for over 2 years. You have noticed that for the last 12 months the business has regularly had cash assets of $20,000 or more at the end of each month. You have found a 6-month certificate of deposit that pays 6% compounded monthly. To obtain this rate of interest, you must invest a minimum of $2,000. You have also found a high interest savings account that pays 3% compounded daily. Based on the cash position of the business at this time, assume that you decide to invest $4,000.

2. Assume that you decide to invest the $4,000 in the high-interest savings account.

a. What future value would you expect to receive at the end of 6 months? (14 points)

b. How much interest would the investment earn for the period? (14 points)

c. What would be the effective rate of the investment? (14 points)

With the aid of a diagram and with labour hours as my quantity variable , how would a minimum wage rate BELOW equilibrium wage rate affect welfare(1), and what is the effect on welfare if the new minimum wage rate is ABOVE equilibrium wage rate (2)

Two alternative start-up FinTech projects were being contemplated for financing by a venture capitalist to determine which one is more viable, based on cost and returns. Table 4.1 below shows a five-year schedule for the two projects:

Table 4.1
Project Start of Project End of 1st Year End of 2nd Year End of 3rd Year End of 4th Year End of 5th Year
BlockChain GoPay ($230,000) ($32,000) $660,000 $96,000 $106,000 $119,000
DLT CloudPay ($276,000) $20,000 $65,000 $96,000 $102,000 $118,000

(a) If you were the Project Manager on the Venture Capitalist team, using the Net Present Value (NPV) method, which project would you recommend be financed based strictly on the schedule shown above and an interest rate of 7.5%?
(b) Use a Microsoft Excel, or any other method to deduce/calculate the Internal Rate of Return (IRR) for both projects. Explain how you would advise the Bank which project to finance using the result from the IRR method?

what is gdp

According to the Department of Labour’s new rates,domestic workers working in Area A (bigger metropolitan areas) who work more than 27 ordinary hours per week,must be paid a minimum of R13,69 per hour.
Workers who work fewer than 27 hours per week,must be paid a minimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669,24 a month.
Gardeners, drivers or people who look after children,the aged,sick,frail or disabled in a private household,all qualify as domestic workers.
With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour hours as your quantity variable.