Show with isoquant analysis the effect on the cost minimized output if:
a. Due to concerns that firms are automating too much, the government has decided to impose a tax on capital equipment to get firms to replace some capital with additional workers.
b. A period of prolonged inflation raises the price level of all inputs in society (you can assume the firm will still spend the same amount of money)
c. Minimum wage in society rises (you can assume this firm hires minimum wage employees), however to prevent growing unemployment, the government requires all firms to employ the same number of workers before and after the wage change.
d. To take advantage of good economic situations, firms have increased their production budget.
In: Economics
Rymore Company has provided the following:
July | August | |
Sales in Units | 1,500 | 1,600 |
Cost A | $35,000 | $36,000 |
Cost B | $16,000 | $16,000 |
Cost C | $67,500 | $72,000 |
Which of the following classifications best describes the behaviour of Cost A?
Select one:
a. Mixed.
b. Variable.
c. Fixed.
d. Opportunity cost.
In: Accounting
Which of the following statements about the cost of capital is CORRECT ?
Select one:
a. Both the cost of debt and equity financing will decrease when a firm expands into a risky new area.
b. Both the cost of debt and equity financing will decrease when a nuclear plant company encounters a ban on nuclear power generation in certain states.
c. The WACC of a firm will decrease when investors become more risk averse.
d. Both the cost of debt and equity financing will decrease when a firm increases its debt/asset ratio.
e. Both the cost of debt and equity financing will increase when the Federal Reserve tightens credit.
In: Finance
Euclid acquires a 7-year class asset on May 9, 2018 for $80,000. Euclid does not elect immediate expensing under § 179- She does not claim any available additional first-year depreciation. Calculate Euclid’s cost recovery deduction for 2018 and 2019.
In: Accounting
Hamlet acquires a 7-year class asset on November 23, 2018, for $100,000. Hamlet does not elect immediate expensing under § 179- He does not claim any available additional first-year depreciation. Calculate Hamlet’s cost recovery deductions for 2018 and 2019.
In: Accounting
What do you understand by Cost of Production in Economics?
In: Economics
1. If we know that a bond has a cost of $500 and that it will return $800 in 12 years, what is the interest rate, assuming that it is compounded annually?
2. XYZ corporation earnings per share were $2.78, and its growth rate was 9.5% per year for 10 years. At that rate, how long would it take for its earnings per share to double?
3. If you deposit $500 at the end of each year for 10 years and earn 8% per year, how much would you have at the end of 10 years?
4. If you invest $3,000 per year beginning at age 20, and continue doing this until you are 75 years old, and earn 9% interest, compounded annually, how much would you have at age 75?
5. If you must have $25,000 in 10 years, but you can contribute only $2,000 per year, what rate of return must you earn to reach your goal?
In: Finance
Which of the following is a consideration for the design of a
cost management system?
a. cost system should have a decision focus
b. different cost is used for different purposes
c. cost information for managerial purposes must meet the
cost-benefit test
d. all of the above
In: Accounting
A researcher wants to determine if there is a significant difference in the mean cost of a meal in the world's most expensive restaurants. A survey of 100 people in the most expensive restaurant in the world in Tokyo, Japan produced an average cost per person of $277 and a standard deviation of $35. A survey of 100 people in the second most expensive restaurant located in Toronto, Canada produced an average cost per person of $213 with a standard deviation of $55. Test at the .10 level of significance. What is the value of the test statistic?
In: Statistics and Probability