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The management of XYZ Company is considering the purchase of a $25,000 machine that would reduce operating
costs by $4,000 per year. At the end of the machine’s 10‐year useful life, it will have a zero salvage value. The
company requires a 14% on all investment projects.
costs by $4,000 per year. At the end of the machine’s 10‐year useful life, it will have a zero salvage value. The
company requires a 14% on all investment projects.
A firm faces the production function Q = 10L2K2. The wage rate is 2 and the rental rate of capital is 1. What are the optimal amounts of L and K if the firm’s objective is to produce Q = 25, 000
Five hundred identical almond growers in region A have (long-run) total cost T CA =
q
2
100
where q is the number of crates a grower produces. Three hundred growers in region B have
(long-run) total cost T CB =
q
2
50 .
(a) nd the individual supply function for each type of almond grower
(b) \add up" all individual supplies to nd the almond industry supply function
(c) if the market demand for almonds is q
D(p) = 105; 000
2; 500p what will be the equilibrium
price of almonds? The equilibrium quantity? How much does each type of grower
produce? How much pro t/loss they make?
q
2
100
where q is the number of crates a grower produces. Three hundred growers in region B have
(long-run) total cost T CB =
q
2
50 .
(a) nd the individual supply function for each type of almond grower
(b) \add up" all individual supplies to nd the almond industry supply function
(c) if the market demand for almonds is q
D(p) = 105; 000
2; 500p what will be the equilibrium
price of almonds? The equilibrium quantity? How much does each type of grower
produce? How much pro t/loss they make?
Sadiki
Peter and Jane receive the same annual income, but Peter , who gets paid monthly, will have a much higher demand for active balances than Jane, who gets paid weekly.
a. Is this statement true ?
b. Justify your answer.
Peter and Jane receive the same annual income, but Peter , who gets paid monthly, will have a much higher demand for active balances than Jane, who gets paid weekly.
a. Is this statement true ?
b. Justify your answer.
After graduating from college in 2010, Art Major\'s starting salary is $50757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, i.e. an escalator clause in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table below, how much will Art Major be earning in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.
Economics
Amanda has bought a second-hand car for $4000 she plans to keep it for 4 years, at the end of which it is likely to fetch $500. if the maintenance cost is $300 per year, and I=8% per year, what is the cars net cost
If the unemployment is above zero, the economy is not equal to its potential output. True or false? Explain
Use the following data
a) Profit after tax 45,000
b) Depreciation 75,000
c) Tax Paid 25,000
d) Interest paid 5,000
e) Dividend paid 10,000
f) Cash Received from sale of Building 40,000
g) Sale of Preferrence Share 35,000
h) Repurchase of Ordinary Shares 30,000
i) Purchase of Machinery 20,000
j) Issuance of Bond 50,000
k) Debt Retired through issuance of ordinary shares 45,000
l) Paid off long term bank borrowings 15,000
l) Profit on sale of building 20,000
Requirements:
1. Calculate Cash Flow from operating activities
2. Calculate Cash Flow from Investing activities
3. Calculate Cash Flow from financing activities
a) Profit after tax 45,000
b) Depreciation 75,000
c) Tax Paid 25,000
d) Interest paid 5,000
e) Dividend paid 10,000
f) Cash Received from sale of Building 40,000
g) Sale of Preferrence Share 35,000
h) Repurchase of Ordinary Shares 30,000
i) Purchase of Machinery 20,000
j) Issuance of Bond 50,000
k) Debt Retired through issuance of ordinary shares 45,000
l) Paid off long term bank borrowings 15,000
l) Profit on sale of building 20,000
Requirements:
1. Calculate Cash Flow from operating activities
2. Calculate Cash Flow from Investing activities
3. Calculate Cash Flow from financing activities
In the international market for strawberries, Ireland is small and can be assumed to be unable to affect world prices. It imports strawberries at the price of 15 euros per box. The domestic supply and domestic demand curves for boxes of strawberries are given by QS = 60 + 20P and QD = 1225 – 15P respectively.
i. Assume Ireland is completely open to trade. What is the equilibrium price and quantity consumed? How much is produced domestically and how much is imported? Illustrate you answer on a diagram.
ii. Now consider the effect of an import quota of 400 boxes. What happens to the price of strawberries and the quantity consumed? How much is produced domestically and how much is imported? Illustrate you answer on a diagram.
iii. Who wins and who loses from the imposition of the quota? Discuss the effects on consumers, domestic producers and importers in terms of welfare changes. Illustrate you answer on a diagram.
i. Assume Ireland is completely open to trade. What is the equilibrium price and quantity consumed? How much is produced domestically and how much is imported? Illustrate you answer on a diagram.
ii. Now consider the effect of an import quota of 400 boxes. What happens to the price of strawberries and the quantity consumed? How much is produced domestically and how much is imported? Illustrate you answer on a diagram.
iii. Who wins and who loses from the imposition of the quota? Discuss the effects on consumers, domestic producers and importers in terms of welfare changes. Illustrate you answer on a diagram.
A. Suppose that the demand and supply curves for coffee in the United States are given by P = 200 - QD and P = 50 + 0.5QS respectively.
i. What are the equilibrium price and quantities if there is no international trade?
ii. What are the equilibrium quantities (supply, demand) for the US if the nation can trade freely with the rest of the world at a price of 50? In other words, what is the quantity demanded and supplied in the US at this new price? What trade occurs as a result of this change? Show this diagrammatically.
iii. What is the effect of the shift from autarky to free trade on US consumer surplus (CS), on US producer surplus (PS) and on overall US welfare (CS + PS)? Discuss these changes and illustrate them diagrammatically.
i. What are the equilibrium price and quantities if there is no international trade?
ii. What are the equilibrium quantities (supply, demand) for the US if the nation can trade freely with the rest of the world at a price of 50? In other words, what is the quantity demanded and supplied in the US at this new price? What trade occurs as a result of this change? Show this diagrammatically.
iii. What is the effect of the shift from autarky to free trade on US consumer surplus (CS), on US producer surplus (PS) and on overall US welfare (CS + PS)? Discuss these changes and illustrate them diagrammatically.
