In: Economics
Equipment for immersion cooling of electronic components has an installed value of $182,000 with an estimated salvage value of $40,000 after 15 years. For years 2 and 10, use DDB book depreciation to determine: (a) the depreciation charge, and (b) the book value.
I want an explanation for the steps
In: Economics
Jacob is a private math tutor. He has no cost (assume just for simplicity, we know that opportunity of his time is not zero). Currently Jacob has two students. Andy’s demand function for math private classes is pA = 20−qA while Ben’s demand function is pB = 12−(1/2)qB, where q is number of math classes.
(a) Assume that Jacob cannot price discriminate. Jacob has to charge the uniform price to both students. Find the profit-maximizing price he charges for his services, number of the classes each student takes and his profit. Support your answer by a graph.
Assume that Jacob can price discriminate, and indeed uses 3rd degree price discrimination.
(b) Briefly describe features of this price discrimination and hypothesize which student will pay higher price and why.
(c) What is the price Andy will pay and how many classes does he buy?
(d) What is the price Ben will pay and how many classes does he buy? (
e) What is Jacob’s profit? Support these equilibria with graph. Comment on your findings and compare it with profit from part a).
In: Economics
15.
There are two types of private cars in Country A: small-cylinder
engine and large-cylinder engine. The gasoline price in Country A
has increased rapidly recently. With the help of demand-supply
diagrams, briefly explain why the increase in gasoline price leads
to an increase in the price of new small-cylinder engine cars and a
decrease in the price of new large-cylinder engine cars in Country
A.
In: Economics
In: Economics
It is said that economic crises (such as the economic recession) can be expected through the performance of financial markets in the period prior to them.
1- What is meant by that?
2- What is your personal opinion?
In: Economics
please respond to the following in a minimum of 175 words:
Explain what happens to the interest rate if the money supply increases or decreases and the money demand remains unchanged. Explain what happens to the interest rate if the money demand increases or decreases and the money supply remains unchanged.
In: Economics
a. Using the concept of price elasticity of demand, explain the conditions under which it would be rational for pharmaceutical companies to reduce the supply of drugs. Explain carefully.
b. Under the conditions you have identified, what do you think the appropriate response of the government should be? Explain your answer.
In: Economics
In: Economics
Scenario: I can get a new bond from a company with a 10yr maturity and and a 5% yield (for par value) or I can buy an existing bond (from the same company) with a 10yr maturity and a 4% yield... Would I pay the same, more, or less for the existing bond (compared to the new bond)... and what risk does this represent when investing in fixed income?
In: Economics
Advertising impact monopolistic competition. Why? Please explain it.
In: Economics
3. What is the effect of an exogenous increase in P in the Keynesian model? What is the effect of an exogenous increase in GDP in the Classical model?
In: Economics
How has sstructural discrimination in regards to African Americans in the United States inhibited economic growth
In: Economics
Horizontal Mergers. Consider a market that initially has two firms selling differentiated products and competing in prices. The cost of production of each firm is C(q)=0. Demand for the two goods is given by the following system: q1=420-4p1+p2 q2=420-4p2+p1 The goal of this question is to find by how much the prices of the goods will increase if the firms horizontally merge. To do this, we first derive the equilibrium prices before the merger, and then compare with the optimal prices set by the merged firm.
a) Firm 1’s profit maximization problem is to choose p1 so as to solve: max [p1 (420-4p1+p2)] p1≥0 Derive firm 1’s first order condition (differentiating this profit function with respect to p1).
b) Assuming in equilibrium p1=p2, find the equilibrium prices before the merger.
c) If the firms merge, and continue to sell the same two products, the merged firm chooses both prices choosing p1 and p2 so as maximize problem. Write the profit maximization problem.
d) Find the profit maximizing prices. You may assume that these prices are equal p1=p2.
In: Economics
which of the below will result in devaluation of euro ?
α. reduction of deficit at the commercial balance of eurozone
b. Increase of interest rate in Eurozone
c. Decrease of interest rate in USA
d. Decrease of inflation in Eurozone
e. None of the above
In: Economics