Assume a constant cost industry. Assume it is a competitive market and that the market is in a long-run equilibrium. Graph this.Show what happens in both the short run and the long run if the government imposes a one-time tax of $200 on each firm. That is, no taxes will ever again be imposed. What if the firm does not believe that no taxes will ever again be imposed, could this change your analysis?
Show graph as well
In: Economics
In: Finance
| FILL IN THE CORRECT TERMINOLOGIES IN THE BLANK SPACES | ||
| _____ 1. | a. Any cost that the management of a responsibility center cannot affect within a given time span. | |
| _____ 2. | b.Units that exist only to support other departments or customers. | |
| _____ 3. | c. Characteristics or attributes that managers must achieve in order to drive the organization toward its goals. | |
| _____ 4. | d. A measure of income divided by the investment required to obtain that income. | |
| _____ 5. | e. The effort to ensure that products and services perform to customer requirements. | |
| _____ 6. | f. The joint formulation by managers and their superiors of a set of goals and plans for achieving the goals. | |
| _____ 7. | g. An approach that focuses on prevention of defects and on customer satisfaction. | |
| _____ 8. | h. An integrated set of techniques for gathering and using information to make planning and control decisions | |
| . | ||
| _____ 9. | i. Corporate costs such as personnel, legal, human resources that support revenue-generating activities | |
| _____ 10. | J. Adjusted operating income minus cost of capital invested. | |
| _____ 11. | k. A set of activities and resources assigned to a manager | |
| _____ 12. | l. Any cost that a manager’s decisions and actions can influence. | |
| _____ 13. | m. A performance measurement system that uses both financial and non-financial measures. | |
| _____ 14. | n. Departments where employees work on the organization’s products or services. | |
| _____ 15. | o. A method that ignores other service departments when allocation service costs to operations. | |
| _____ 16. | p. concentration of decision making authority only at the highest level of the organization. | |
| _____ 17 | q. A method that recognizes that some service departments support other service departments as well as operating departments | |
| _____ 18. | r. Responsibility centers for which a company develops separate measures of revenues and costs | |
| _____ 19. | s. A statement that allocates costs directly associated to customer actions to the customer. | |
| _____ 20. | t. The delegation of decision making authority to lower levels of the organization. | |
In: Accounting
Calculate the user cost of capital of a machine that costs $100,000 and depreciates at a rate of 25%, when the nominal interest rate is 4% and the expected inflation rate is 1%.
(a) $3000
(b) $25,000
(c) $28,000
(d) $29,000
In: Economics
Suppose that you are offered an investment at cost of 800. That investment will pay the following cash flows.
0. 1. 2. 3. 4. 5
0. 500. 400. 300. 200. 100
A) should you make the investment if the required rate of return is 12% per year? why? explain.
B) What is the internal rate of return of this cash flow stream? if you require a rate of return of 12% annually. Should you make the investment? Why? explain.
In: Finance
Cost of Competitive Firm
In Vienna, there is a competitive market for the production of upright pianos. David’s piano production firm can make at most six pianos per week.
|
Quantity |
Fixed Cost ($) |
Variable Cost ($) |
Total Cost ($) |
Marginal Cost ($) |
|
0 |
2000 |
--- |
||
|
1 |
5000 |
|||
|
2 |
2000 |
11000 |
||
|
3 |
18000 |
|||
|
4 |
8000 |
|||
|
5 |
37000 |
|||
|
6 |
45000 |
Complete the four cost columns in the table above.
If the market price of pianos is $8000 this week, how many pianos should David’s firm produce to maximise profit?
What would David’s profit be this week? $
8 points
In: Economics
Company A purchased a lathe on January 1, 2019, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Company A uses straight-line depreciation. At the beginning of 2021, Company A estimated the lathe to have a remaining life of four years with no residual value. For the year ended December 31, 2021, Company A would report depreciation expense of: A. $6750 B. $7050 C. $7000 D. $7500 I'm looking for the answer and an explanation please. TYIA
In: Accounting
Describe Telemedicine. Does Telemedicine increase or decrease the cost of healthcare?
In: Nursing
The cost of gasoline in an area follows an unknown distribution with a mean of $3.79 and a standard deviation of $0.92. Suppose a random sample of 45 di↵erent gas prices is drawn over a 5 year period.
a) What is the probability that the average price of gas there over those 5 years is less than $3.95?
b) What is the probability that the average price of gas there over those 5 years is more than $4.00.
In: Statistics and Probability
The annual subscription to a magazine costs $50 and this cost is expected to increase by 10 percent per year. A life subscription, on the other hand, costs $500. The relevant discount rate for analyzing this situation is 12 percent. In order to justify taking out a life subscription, what is your minimum life expectancy (approximately)
In: Finance