Economics Answers

A firm has Sh 3,000,000 debt at 5% interest in its capital structure and the expected annual operation income is sh 1,000,000 and equity capitalization rate is 10%. Calculate the value of the firm and overall cost of capital.

Meaning of wages indexation with diagram?

b) ABC Ltd is considering the introduction of a new equipment at a cost of sh 90,000. The equipment has a useful life of four years and salvage value of sh 16,500 and installation costs of sh 10,000. Assuming accelerated depreciation of 33.33%, 44.45%, 14.8% and 7.41 and further that the machinery will be housed at an abandoned warehouse with no alternatives use. The facility is expected to generate additional net operating revenue before depreciation and taxes as follows:

Year cash flow
1 sh 35,167
2 sh 36,250
3 sh 55,725
4 sh 32,258

If the tax rate equal 40%, estimate the projects relevant incremental cash flow.

what is tripoly?tripoly long description and also example

Explain why the cooperative model of organization has emerged.

Explain that overall levels of income, employment, and prices are determined by the spending and production decisions of households, businesses, government, and net exports

The demand function for product X is: Qd = 600 – 20Px + 0.02Y – 5Pr The supply function is: Qs = –300 + 10Px
Where:
Qd = the quantity of X demanded Qs = the quantity of X supplied Px = the price of product X Y = the average consumer income Pr = the price of the related product

If Y=35000 and Pr is R20, draw the demand curve

.The following equation; Q = r - kP, depicts -------
a.supply function
b.demand function
c.demand curve
d.supply schedule
Please help me answer this question.

The following table represents three firms, the amount they pollute, and the cost to reduce their pollution by one ton. Use the information to answer the following questions.
Firm Pollution(tons) Cost/ton
A 50 $20
B 100 $25
C 60 $10
5. Environmental Economists have estimated that the firms are polluting too much. To
achieve the socially optimal level of pollution we need to reduce pollution by 60 tons. If
we use a command and control policy that forces each firm to reduce by the same
amount, what will be the cost of 60 tons of pollution reduction?
6. Being a student of Professor Hayes’ Econ course, you suggest that using tradeable
permits can achieve the same goal at a lower cost. How many permits should be issued to
each firm to reduce pollution by 60 tons?
7. Using tradeable permits, assume that B buys permits from C for $10 each. What is the
cost of pollution reduction after they permits are traded?

The demand function for product X is: Qd = 600 – 20Px + 0.02Y – 5Pr The supply function is: Qs = –300 + 10Px
Where:
Qd = the quantity of X demanded Qs = the quantity of X supplied Px = the price of product X Y = the average consumer income Pr = the price of the related product

Is product X a normal or an inferior good? Explain.
Are products X and R substitutes or complements? Explain.