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What is the after-tax investment value of the machine

 

What is the after-tax investment value of the machine

Microeconomics

A corporation purchased a machine for $60,000 five years ago. It had an
estimated life of 10 years and an estimated salvage value of $9,000. The
current book value of this machine is $12,500. If the current market value is
$30,000 and the effective income tax rate is 38%, what is the after-tax
investment value (rounded to the nearest whole dollar) of the machine? Utilize
the outsider viewpoint. The after-tax MARR is 10% per yea

Compare and contrast victor frankenstein and his creature

Compare and contrast victor frankenstein and his creature

Microeconomics

Compare and contrast Victor Frankenstein and his creature. Discuss their
similarities and their differences. Use quotations and examples from the novel
to clarify and support your argument in a minimum of 2,000 words.

Adhere to APA formatting and reference guidelines when writing your response.
Additionally, your response should be free of grammatical errors, use complete
sentences, and give specific details to support statement.

 

Explain what the long-run effects would be on real gdp

Explain what the long-run effects would be on real gdp

 

Microeconomics

Many people believe that Congress will eventually have to reduce Social
Security benefits in order to reduce the budget deficit. Although most of the
changes would not take place until later, assume for the purpose of this
problem that Social Security benefits were cut today by $100billion per year.

A) If the marginal propensity to consume is 0.8, explain what the long-run
effects would be on real GDP, public saving, and national saving.

B) The US is a large open economy with a trade deficit. Use the appropriate
graphs to illustrate and state what the reduction in Social Security benefits
would do to each of the following inthe long run: national saving, investment,
the US real interest rate, net capital outflows, the real exchange rate, and
the trade deficit.

C) Now, consider the small open economy of Norway, which has a trade surplus.
If the US, a large open economy, were to reduce its Social Security benefits,
use the appropriate graphs to illustrate and state what would happen in the
long run to Norway’s national saving, investment, interest rate, real exchange
rate, and trade surplus.

 

Explain any relevant contextual factor that may influence it

Explain any relevant contextual factor that may influence it

 

Microeconomics

Economics Project

Overview: The final project for this course asks you to select and analyze a
case study that presents an economic problem facing a company that operates
within a particular market structure.

You may encounter additional companiescase studies within your ECO 500 Case
Study CoursePack. However, please disregard them and ONLY focus on the
following:

– American Airlines
– Heinz
– Microsoft

The American Airlines case addresses how a company manages revenue, the
Microsoft case looks at how a company maintains market power, and the Heinz
case exemplifies how a company deals with competition. All three cases involve
a company’s executives and managers looking for ways to increase profits. The
parent companies of Heinz and Beech-Nut entered into a merger agreement, which
was blocked by the Federal Trade Commission. American Airlines attempted to
navigate the mind-numbing pricing structure that created the risk of being
considered predatory. Microsoft’s anticompetitive actions in the browser
market resulted in legal problems.

For the final project, you will select one of these case studies and counsel
the CEO on an alternate strategy. Imagine that the CEO has tasked you, the
corporate economist, with researching the issue and reporting on a possible
plan of action. To begin this process, you must clearly understand the problem
at hand and be able to identify the root cause. Selecting the appropriate
economic model to drive your analysis will be important in guiding your
research.

Journals are private between the student and the instructor. Review this
tutorial for information on creating a Blackboard journal entry.

Prompt: Compose a preliminary problem statement in which you identify the
company you have selected to research and describe the problem at hand. In
this statement, you should:

– Identify and articulate the problem as presented in the case study,
describing any relevant contextual factors that may influence it.

– Use your background knowledge in economics and your critical thinking
skills to deduce possible root cause(s) of the problem

– Identify the appropriate economic model(s) that should drive the analysis
of this problem. Is this a demand-side problem? Or is it a supply-side
problem?

In business scenarios such as this one, problem statements are needed to
describe the problem in a concise way. These statements provide a clear and
focused analysis of objectives and offer a method that will be followed to
find possible solutions.

You may find it useful to gather information about the organization or
company’s current initiatives and processes, general policies, and stated
goals. Information can generally be found in the organization’s main website,
annual report and mission statement, and articles authored by the company or
by outside analysts. Additionally, you might consider accessing relevant
company and market information on the following sites:

– U.S. Bureau of Labor Statistics

This is a good source for costs information (i.e., producer price index
[PPI]), labor market conditions (i.e., employment and unemployment by
industry), and prices of various goods (i.e., consumer price index [CPI]).

– Electronic Data Gathering, Analysis, and Retrieval (EDGAR)

 

Evaluate a policy aimed at limitingthe use of a pesticide

Evaluate a policy aimed at limitingthe use of a pesticide

 

Microeconomics

1. Suppose a dose-response function has been estimated to beR= -0.2 +
1.6D,whereD is emissions of sulfur dioxide in parts per million (ppm), andR is
theresponse measured as percent of agricultural crop decline. Determine if
there is athreshold, and if so, what is the threshold? If there is none,
explain how you know.

2. Suppose you are using risk-benefit analysis to evaluate a policy aimed at
limitingthe use of a pesticide applied to grain crops. Describe the risks and
benefits thatwould have to be estimated to conduct this analysis properly.

 

Describe data collection techniques for analyzing market

 

Describe data collection techniques for analyzing market

 

Microeconomics

 

Project Milestone: Econometric Model Selection

 

Submit a report of the topic you have chosen and the data available to conduct
a review of this topic. In your introduction, describe what guides the
selection of appropriate econometric models in studies of interactions between
environmental and economic variables. Specifically discuss the economic
situation, theory, identified needs, and application of models to address the
problem. In addition, briefly describe data collection techniques for
analyzing the market, stated preference, and revealed preference techniques.
This introduction should be general in nature, but appropriate for both
technical and non-technical audiences

Milestone

Your economic impacts and results paper should answer the following question:

Based on the measurement of environmental-economic impacts examined during
this course, what information would non-economists need in order to understand
the implications of these situations so that they can determine possible
benefits of future studies?

Milestone One consists of an introductory report on the topic you have chosen
and the data available to conduct a review of this topic. In your
introduction, describe what guides the selection of appropriate econometric
models in studies of interactions between environmental and economic
variables. Specifically, discuss the economic situation, theory, identified
needs, and application of models to address the problem. In addition, briefly
describe data collection techniques for analyzing the market, stated
preference, and revealed preference techniques. This introduction should be
general in nature, but appropriate for both technical and non-technical
audiences.

Specifically, the following critical elements must be addressed:

Introduction

A. In general, what guides the selection of appropriate econometric
models in studies of interactions between environmental and economic
variables? Specifically discuss the economic situation, theory, identified
needs, and application of models to address the problem.

B. Briefly describe data collection techniques for analyzing market,
stated preference, and revealed preference techniques.

Guidelines for Submission: Milestone One must be two to three pages in length
with double spacing, 12-point Times New Roman font, one-inch margins, and APA
citations.

 

 

Describe the value of developing a sales force

 

Describe the value of developing a sales force

Microeconomics

DISCUSSION

Watch the following video

https://www.youtube.com/watch?v=0-4ivPwMDCE

There are two very different target markets and sales forces discussed in the
videos. Identify some of the key differences between the organizations’ sales
forces and target markets. Explain the value of developing a sales force based
on the target market. Use examples from each video to support your response

What is real autonomous consumption

What is real autonomous consumption

Microeconomics
The Multiplier in a country is equal to 5, and households pay no taxes. At the
current equilibrium real GDP of $14 trillion, total real consumption spending
by households is $12 trillion. What is real autonomous consumption (A) in this
country

What is the price elasticity of demand

What is the price elasticity of demand

 

Microeconomics

You just opened a flower shop and are trying to understand pricing issues. You
were told that elasticities are very important in determining prices and what
products to supply, so you decide to investigate this concept.

You call your friend, an economics professor, and ask, “What is the price
elasticity of demand? What determines it? What is elastic and inelastic
demand?”

To really understand it, compute the following price elasticities of demand:

The price of a laptop increases by 20% and there is a 40% drop in the quantity
demanded.
The price of a pack of cigarettes increases by 10% and there is a 5% drop in
the quantity demanded.
Of the above examples, which is more elastic, and which is the least elastic?
Why? Answer the following questions:

Why is elasticity an important concept for a business?
Bridge tolls
Beachfront properties
Gourmet coffee
Gasoline
Cell phones

Now that you are an expert on elasticities, what do you think would be the
best time of year to raise prices of flowers, and why?

What do you think the elasticities are in the flower business?

 

Discuss how pvrs will affect the demand from advertisers

Discuss how pvrs will affect the demand from advertisers

Microeconomics

Case Study Analysis

Personal Video Recorders (PVRs): Personal video recorders (PVRs) are digital
video recorders used to record and replay television programs received from
cable, satellite, or local broadcasts. However, unlike VCRs, which PVRs
replaced, PVRs offer many more functions, notably the ability to record up to
60 hours of programs and easy programming.

A PVR consists of an internal hard disk and microprocessor. After the owner
installs the hardware, the PVR downloads all upcoming TV schedules to the
hardware via a phone or cable connection. Users merely enter the name of the
show(s) they want recorded and the system finds the time and channel of the
show and automatically records it. Users must subscribe to a cable or
satellite system if they wish to record programs off these channels.

Besides ease of programming and much larger recording capacity than video
tape, PVRs allow the user to watch a prerecorded show while the unit is
recording a new program, pause watching live programs (for example, if the
phone rings) then resume watching the rest of the live broadcast, view instant
replays and slow motion of live programs, and skip commercials. In effect,
PVRs like older VCRs allow viewers to control when they watch broadcast
programs (called “time shifting”). However, PVRs provide much sharper pictures
and are much simpler to operate than VCRs, and PVRs allow the user to download
the television schedule for the next week.

Two companies currently sell the hardware and provide the subscription
service: TiVo and RelayTV. Both firms started in 1997. As of mid-2002 TiVo had
nearly 500,000 subscribers and ReplayTV had about 100,000. Companies are
developing new technologies that make it even easier for users to “snip”
commercials. Cable companies have begun offering a combined cable box and PVR
in one unit for a small additional monthly charge. This further simplifies
setup and operation and the user gets a single bill.

*J Gudmundsen (2002), “Video Gizmos Change the Rules,” Democrat and Chronicle
(August), 5E and 8E.

1. Discuss how PVRs will affect the demand from advertisers (i.e., to place
advertisements in network television programs).

2. Suppose you are in charge of setting the price for commercial
advertisements shown during Enemies, a top network television show. There is a
60-minute slot for the show. However, the running time for the show itself is
only 30 minutes. The rest of the time can be sold to other companies to
advertise their products or donated for public service announcements. Demand
for advertising is given by:

Qd = 30 – 0.0002P + 26V

In which Qd = quantity demanded for advertising on the show (minutes), P = the
price per minute that you charge for advertising, and V = the number of
viewers expected to watch the advertisements (in millions).

a) All your costs are fixed, and your goal is to maximize the total revenue
received from selling advertising. Suppose that the expected number of viewers
is one million people. How many minutes of advertising will you sell? What
price should you charge? What is total revenue?

b) Suppose price is held constant at the value from part (a). What will happen
to the quantity demanded if due to PVRs the number of expected viewers falls
to 0.5 million? Calculate the “viewer elasticity” based on the change in the
expected number of viewers and the corresponding change in the quantity
demanded (when compared to the levels of these variables in part (a)). Explain
in words what this value means.

3. As more viewers begin using PVRs, what happens to the revenues of the major
networks (CBS, NBC, ABC, and FOX)? For example, is there any change? If so, do
revenues increase/decrease and by how much exactly? Explain.

4. Discuss the long-run effects for the major networks if a significant
proportion of the viewers begin adopting these “advertising snipping” systems.
Offer support for your claims.

5. What advice would you give the major commercial networks and producer of
programming for these networks as more consumers adopt PVRs?