At this point, the consumer should consume 20 units of good X and 15 units of good Y. d) At the optimal consumption bundle, what is the Marginal Rate of Substitution? Explain how you found this answer. Interpret the meaning of the Marginal Rate of Substitution at this bundle. At the optimal consumption bundle, the marginal rate of substitution is 30/40=3/4=.75 On IC curve ii, where the budget line is tangent to it, you follow the line to both axis. You can interpret the MRS as the consumer willing to give up 3 units
Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to 25. Refer to the graph shown. If this monopolistically competitive firm maximizes profit, it will 26.
What is correct here? 26 Which of the following is never negative? 27 If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm? 28 In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems?
After adding $15,300 to the $15,000 in savings, the cash flow for year 2 would equal $30,300. For year 3, the depreciation expense would equal $85,000 * .15, or $12,750. The tax on the year 3 deprecation would then be $12,750 * .40, which equals $5,100. After adding $5,100 to the $15,000 in savings, the cash flow for year 3 would equal
What is correct here? 26 Which of the following is never negative? 27 If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm? 28 In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems?
Let (R/P)1 equal the initial value of the real rental price of capital, and (R/P)2 equal the final real rental price of capital after the labour force increases by 10 percent. The rental price increases by The real rental price also increases by 6.9 percent. Let (W/P)1 equal the initial value of the real wage, and (W/P)2 equal the final real wage after the labour force increases by 10 percent. The real wage increases by The real wage decreases by 2.8 percent. c) Using the same logic as (b) So, output increases by about 3 percent.
How much total income tax will Custom Craft Services and Jaron pay (combining both corporate and shareholder level tax) on the $200,000 of income if CCS pays Jaron a salary of $150,000 and distributes its remaining after-tax earnings to Jaron as a dividend? c. Why is the answer to part b lower than the answer to part a? ?
With no subsidy, the consumer maximizes utility at point A, and with an in-kind benefit of 10 units of free public transportation, the consumer maximizes utility at point B. A cash subsidy equal to $20 would allow the consumer to reach point B as well, so the government could convert an in-kind subsidy valued at $20 to a cash subsidy of $20 and leave people equally well off. Other goods B A 10 20 30 Public Another possibility is that the utility-maximizing point for a cash subsidy differs from the utility-maximizing point for an in-kind subsidy, as illustrated in the next graph. In this case, an in-kind subsidy, costing $20, would allow the consumer to move from point A’ to point C’, while a cash subsidy of $20 would
What advantage does buying stock on margin offer Victor? Under the following conditions the percentage earned by Victor is: 50.5% One advantage Victor has buying the stock on margin is that he will be able to use the borrowed funds to increase his percentage of return. 3. What would be the percentage returns if the sale prices had been $50 or $100? If the sale price was $50: The percentage of returns for Darin would be at a loss of -16.3% The percentage of returns for Victor would be at a loss of -31.8% If the sale price was $100: The percentage of returns for Darin would be at a gain of 66.1% The percentage or returns for Victor would be at a gain of 105.4% 4.
QUESTIONS 1. Table 1 contains the complete cash flow analysis based on GP Manufacturing’s basic information. Explain the inputs into 1) the net initial investment outlay at year 0, 2) the depreciation tax savings in each year of the project’s economic life, and 3) the project’s incremental cash flows? 1. Net initial investment outlay is $302,040.