Suppose that towns collect resources from their surroundings. Then, through trade, they attempt to obtain other desirable items. Mortarville, an urban town that specializes in brick and ore, wants wood to build roads so that it can expand and connect to other major cities. Mortarville has a willingness to pay $50 for wood, since wood is hard for them to obtain. Mayflair also needs wood to build grain silos for their wheat harvests. Mayflair is willing to pay $45 for wood. Timber, the only foresting company, sets the price of wood at $60.
The change in total surplus that arises due to trades between Timber and the towns is equal to zero.
John finds a set of wood in his garage which he is willing to sell for no less than $35. John chooses to sell the set to Mayflair for $40 instead of to Mortarville for $45. As a result of John's transaction with Mayflair, a. total surplus increased, and the market is efficient. b. total surplus decreased, but the market is efficient.
c. total surplus decreased, and the market is inefficient. d. total surplus increased, but the market is inefficient.
Answers
The correct answer is c. The total surplus decreased, and the market is inefficient.
John's transaction with Mayflair decreased the total surplus, as Timber's price of $60 was higher than both Morganville's and Mayfair's willingness to pay. The market is inefficient as John was able to sell the set of wood for $40, which was lower than Timber's price of $60.
c. total surplus decreased, and the market is inefficient. Explanation: John chooses to sell the set to May flair for $40 instead of to Mortarville for $45. As a result of John's transaction with Mayfair, the total surplus decreased and the market is inefficient.
When it comes to resource allocation, a market is effective when it allocates scarce resources to their most valued uses, resulting in the largest possible total surplus (total gains from trade).
It is said to be inefficient when the resources are not allocated to their most valuable uses, resulting in a loss of total surplus. Inefficiency in the market arises as a result of market failure, which can be caused by monopolies, externalities, asymmetric information, and public goods or common-pool resources.
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Related Questions
In digital content marketing types, we have things like blogs, videos, fliers, etc. I would love to know the top 4 that could work best for the restaurant and what digital channels they would use.
Answers
The top 4 digital content marketing types that could work best for a restaurant are blogs, videos, social media posts, and email newsletters.
1. Blogs: A blog is a great way for a restaurant to showcase its personality, share recipes, highlight menu items, and provide behind-the-scenes glimpses. Blogs can be shared on the restaurant's website, social media channels, and email newsletters. This can help to drive traffic to the restaurant's website and increase engagement with customers.
2. Videos: Videos are a great way to showcase the food, the restaurant's atmosphere, and highlight customer testimonials. Videos can be shared on social media channels. Videos can also be used in email newsletters and on the restaurant's website.
3. Social media posts: Social media is a great way to connect with customers and showcase the restaurant's personality. Posting pictures of menu items, specials, and events can help to increase engagement with customers. Social media channels can be used to share posts about the restaurant.
4. Email newsletters: Email newsletters are a great way to keep customers informed about events, specials, and new menu items. Newsletters can also provide exclusive content, like recipes or behind-the-scenes glimpses. The restaurant can collect email addresses from customers who sign up for their newsletter in-store, on their website, or through social media.
In terms of digital channels, the restaurant could use its website, social media channels and email newsletters to share these types of content. The restaurant could also consider partnering with food bloggers and influencers to reach a wider audience.
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associated clinic purchased a special machine for use in its laboratory on january 2 of year 1. the machine cost $134,000 and was expected to last 10 years. its salvage value was estimated to be $7,000. by early year 3, it was evident that the machine will be useful for a total of only seven years. the salvage value after seven years was estimated to be $8,500. associated clinic uses straight-line depreciation. compute the proper depreciation expense on the machine for year 3. round your answers to the nearest dollar.
Answers
Depreciation costs for year three would therefore be as follows: $18,142.86 - ($25,400) = $0. Depreciation is the gradual loss of an asset's value brought on by use, ageing, or obsolescence.
Cost minus Salvage Value equals $134,000 minus $7,000 for the machine's depreciable base, or $127,000.
Depreciable base / Useful life = $127,000 / 7 = $18,142.86 is the annual depreciation cost.
($134,000 - $7,000) / 10 = $12,700 would have been the depreciation charge for the first year.
In year 2, depreciation costs would have been $12,700 ($134,000 - $7,000).
In the first two years, depreciation costs totaled $12,700 + $12,700 = $25,400.
Depreciation costs for year three would therefore be as follows: $18,142.86 - ($25,400) = $0 (since the machine has already been fully depreciated in the first two years)
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Advise someone on the implications of CPA on businesses
Answers
Answer:
Impact of the CPA on businesses
The main function of the Consumer Protection Act now is to protect consumers against product liability. Protection against product liability means that consumers are protected if the product they purchase from you is defective and causes further damage.
Explanation:
Hope it helps! Correct me if I am wrong :>
Jean-Baptiste Say thought that entrepreneurs should be considered a fourth factor of production. Do you agree or not? Explain your reasoning.
Answers
Answer: i do agree
Explanation: they are a factor because they help the economy in the same ways as the other factors of production
Jean-Baptiste Say thought that entrepreneurs should be considered a fourth factor of production. The given statement is true. Because of the economy in the same ways as the other factors of production.
What is the economy?An economy is a collection of interconnected production and consumption processes that ultimately decide how resources are distributed within a community. The demands of persons who live there and conduct business there are met by the production and consumption of goods and services as a whole.
The traditional economy, which uses a country's traditions and history to direct the production and distribution of goods, is a well-known illustration of an economy. The main pillars of traditional economies are agriculture, fishing, and hunting.
Entrepreneurs should be considered a fourth factor of production labor, capital, natural resources, and entrepreneur.
Therefore, By the given statement(Jean-Baptiste Say thought that entrepreneurs should be considered a fourth factor of production) was true.
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How will you be able to become the cost leader of the market in which you deal?
A.
by focusing on customer loyalty
B.
by analyzing your competitive advantage and identifying which strategy works best for your business
C.
by concentrating on serving a particular segment of customers better
D.
by producing a product that has a higher perceived value to the customers when compared to the already existing products
E.
by producing your goods at the lowest price in the market
Answers
Answer:
well it would be A i think
Explanation:
Answer:
E. by producing your good at the lowest price in the market
Explanation:
Plato
Which of the following is not a life role category?
O Risk Taker
O Worker
O Family Member
O Learner
Answers
Risk Taker is not a life role category.
A life role is a set of expectations, behaviors and attitudes that a society assigns to a person based on their gender, age, social status, race or other factors. For example, in many cultures women are expected to be loving, nurturing and care-givers, while men are expected to be strong, provider-types.
Life roles help to define how we see ourselves and how we are seen by others. They can be a source of satisfaction and fulfilment, but they can also be a source of stress and frustration if they do not fit with our own personal aspirations and identity.
Hence, the correct option is "First".
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Select the correct answer. Which of these do you need to do when receiving criticism? A. Do not respond to criticism. B. Ignore the criticism. C. Respond to criticism with your own criticism. D. Consider the criticism as a learning experience. E. Ask your best friend what to do.
Answers
Answer:
The correct answer is D. Consider the criticism as a learning experience.
Explanation:
Criticism is the opinion valued by a person regarding another, a thing or a situation, in which the characteristics of said person, thing or situation are evaluated, and an opinion is expressed about them, which can be favorable or unfavorable.
When a person receives a criticism without bad intention, that is, a genuine or constructive criticism, the ideal is not to feel attacked by whoever emits it, but on the contrary, to take that opinion as valid, to learn from the mistakes made and improve.
describe some of the factors that management considers when setting its minimum target rate of return.
Answers
Management considers factors such as the cost of capital, industry trends, and risk tolerance when setting its minimum target rate of return.
Cost of capital: The cost of capital represents the cost of obtaining funds to invest in the business. A higher cost of capital means that a higher rate of return is required to make the investment worthwhile.
Industry trends: The management team will also consider the general economic conditions and trends in the industry. If the industry is experiencing a downturn, the management team may set a higher minimum rate of return to compensate for increased risk.
Risk tolerance: The management team will also consider their own risk tolerance. If the management team is comfortable with taking on a higher level of risk, they may set a lower minimum rate of return. However, if the management team is less comfortable with risk, they may set a higher minimum rate of return.
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discuss the disadvantages of using the ABC system for Air New
Zealand. Be specific about relating these advantages and
challenges to Air New Zealand’s context
Answers
The ABC system has certain disadvantages for Air New Zealand, particularly in relation to its specific context.
The ABC (Activity-Based Costing) system, while offering benefits in terms of cost allocation accuracy, can pose challenges for Air New Zealand. One significant disadvantage is the complexity and resource requirements involved in implementing and maintaining the ABC system. Air New Zealand operates in a highly dynamic and competitive industry, where timely decision-making is crucial. The adoption of an intricate costing system like ABC can potentially divert valuable resources, both financial and human, away from core operations and strategic initiatives.
Furthermore, the ABC system may not align well with Air New Zealand's organizational structure and processes. The airline industry has a wide range of cost drivers, such as passenger miles, aircraft hours, and fuel consumption, which can vary significantly depending on factors like flight routes, aircraft types, and operating conditions. Air New Zealand's complex operational structure, with various business units and functions, can make it challenging to accurately assign costs to individual activities and allocate them to specific products or services.
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policy makers announce that the federal minimum wage will increase to $15 an hour over the next 10 years by annual increases of $0.78. this will cause
Answers
Policy makers announce that the federal minimum wage will increase to $15 an hour over the next 10 years by annual increases of $0.78. This will cause the Phillips curve will shift upward.
What do you mean by Policy?A policy is an official decision made by a group of people, a commercial organization, the government, or a political party about a certain course of action.
The National Minimum Wage would increase to $15 per hour by 2025 under the Raise the Wage Act of 2021, thereby eradicating earnings that are below the poverty line. According to this analysis, the rise is long overdue and would have a positive impact on both the economy and workers.
Therefore, Policy makers announce that the federal minimum wage will increase to $15 an hour over the next 10 years by annual increases of $0.78. This will cause the Phillips curve will shift upward.
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A company that produces and sells laptops has a weekly profit described by the function P(x) where x is the number of laptops produced and P(x) is given in hundreds of dollars. They determined their marginal profit for producing and selling 50 laptops was 3
Interpret this number in the context of the problem.
When the company produces and sells the______laptop it will____ $___in____
Answers
The company should produce and sell 416 laptops weekly to maximize its weekly profit.
The given computing company's weekly profit function isP(x) = -0.007x³ – 0.1x² + 500x – 700. The number of laptops produced and sold weekly is x units. To maximize the weekly profit of the company, we need to find the value of x at which the profit function P(x) attains its maximum value.
Now, differentiate the given function, we get:P′(x) = (-0.007) * 3x² – 0.1 * 2x + 500= -0.021x² – 0.2x + 500To find the value of x, we set P′(x) = 0 and solve for x.
So,-0.021x² – 0.2x + 500 = 0
Multiplying both sides by -1, we get0.021x² + 0.2x - 500 = 0.
To solve this quadratic equation, we can use the quadratic formula: x = (-b ± √(b² - 4ac)) / 2a where a = 0.021, b = 0.2, and c = -500
Substituting the values of a, b, and c in the above formula, we get: x = (-0.2 ± √(0.2² - 4 * 0.021 * (-500))) / 2 * 0.021≈ 416.1 or -2385.7
Since the number of laptops produced and sold cannot be negative, we take the positive root x = 416.1 (approx.) as the required value.
Therefore, the company should produce and sell 416 laptops weekly to maximize its weekly profit.
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Which factors can affect a stock’s price? Check all that apply. market performance the company’s financial health the quantity products produced location of the company the economy
Answers
Answer:
market performance the company’s financial health the economyExplanation:
Stocks prices fluctuate as long as the market is open. The price of a stock may rise and fall depending on its demand and other factors. The financial performance of a company creates demand for its shares. A company that had good returns will be in high demand, which makes its stock prices rise. A company with poor financial performance will see its share price decline.
The overall performance of the economy and the exchange markets also affects prices. When the economy and the market are performing well, prices tend to rise. The opposite is also true.
Answer:
Market performance
The company's financial health
The economy
Explanation: This is the correct answer for Edge 2020. ^-^
What should you do before you approach a atm
Answers
Answer:
Try to use ATMs with which you are familiar. Choose well-lit, well-placed ATMs where you feel comfortable. If you need to use an ATM late at night, ask a friend to accompany you.
Before approaching the ATM, scan the surrounding area. Avoid the ATM altogether if it is too dark to see, isolated or looks unsafe. If there are bystanders loitering in the area, go to another machine or come back later.
Use your body to shield the screen and keypad before entering your PIN. Make sure other individuals in line stay a reasonable distance from you while you're performing your transaction.
When it comes to a sales position, I strongly prefer a role where the majority of my time is spent managing and growing existing accounts, versus prospecting for new accounts
Answers
In a sales position, the preference is for a role focused on managing and growing existing accounts rather than prospecting for new accounts.
Managing and growing existing accounts can offer several advantages for a sales professional. Firstly, it allows for building strong relationships with clients over time, enabling a deeper understanding of their needs and preferences. This familiarity can lead to increased trust and loyalty, making it easier to identify opportunities for upselling or cross-selling.
Additionally, by focusing on existing accounts, a salesperson can leverage their existing knowledge and expertise to provide tailored solutions and personalized service, further enhancing client satisfaction. This approach also reduces the need for constant prospecting and cold calling, which can be time-consuming and often yield uncertain results.
Instead, the emphasis is on nurturing and expanding relationships with established clients, maximizing their lifetime value and potentially generating referrals or positive word-of-mouth. Overall, prioritizing the management and growth of existing accounts can provide a more stable and predictable sales pipeline while allowing for deeper client engagement and relationship-building.
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How do worker organizations influence wages?
A. They fight for higher pay for workers.
B. They lower the market value of workers.
C. They enforce regulations raising the minimum wage.
D. They require workers to have more education.
SUBMIT
Answers
Answer:
A.
Explanation:
In many industries wages are linked to enterprise cost of living which ensures a fair wages to workers. The wage rates are directly influenced by cost of living of a place. The workers will accept a wage which may ensure them a minimum standard of living. Wages will also be adjusted according to price index number.
They fight for higher pay for workers is the way organizations influence workers for wages. In many businesses, wages are tied to the cost of living of the company, ensuring that workers are paid fairly.
What is wage employment?In both the official and informal economies, wage employment encompasses any salaried or compensated position under contract to another person, organization, or company. Finding decent-paying work for those with impairments is often difficult.
Thus, option A, They fight for higher pay for workers is correct.
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if the high rate method makes the most mathematical sense, why would anyone use snowball method instead?
Answers
Use the snowball method instead if possible so you can maintain your motivation with little wins.
What benefits does employing the debt snowball strategy offer?With the debt snowball, you are forced to be deliberate about paying one bill at a time until you are debt-free. You have control over your debt when you pay your bills in this manner. You'll realise that you are in control of your finances once you pay off that first bill and go on to the next.
What benefit does the high rate method offer?That's because this strategy concentrates on paying off the debt with the highest interest rate first, which means that when you pay off that debt, your overall debt will accrue less interest costs.
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The most common time frame individuals use when developing a budget is _____. A) Yearly B) Monthly C) Daily D) Weeklyeco
Answers
Answer:
Monthly
Explanation:
Isaiah has the opportunity to participate in a work-study program at college. If he participates, how might this benefit him?
He can earn college credit for each hour that he works.
He will get the chance to meet with experts who work in his chosen career field.
He will have the ability to study while at his job on campus.
He will work a part-time job on campus to help pay for his tuition.
Answers
Answer :He can earn college credit for each hour that he works.
Explanation:
It would help him because he wouldn't have to pay for the credits
An offeree whose acceptance is not a mirror of the offer has made a counter offer.
True
False
Answers
What is the woman in white being pressured to do at the beginning of the film?
Answers
Marry At the opening of the movie, the woman in white being pressured is Dr. Bates.
Lemuel Gulliver, a surgeon and sea captain who travels to distant parts of the world, tells the story of four adventures in Gulliver's Travels, a first-person narrative. The major antagonist of the 2010 fantasy adventure comedy film Gulliver's Travels, which is based on the 18th-century novel of the same name by Jonathan Swift, is General Edward Edwardian (also known as General Edward or Edward). The Brobdingnagians are enormous; on average, they stand 60 feet tall, and their lands and creatures are as enormous. Due to Gulliver's extreme vulnerability in this society, it becomes reasonable that the satire progressively focuses on the brittleness (and grotesqueness) of the human body.
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Product enhancements
A) do not really change the basic product.
B) include guarantees and warranties.
C) include features and options
D) reduce the number of target markets one product can satisfy.
Answers
Answer:
C or A
Explanation:
I could answer better with more context
You invested $11,000 in two accounts paying 5% and 8% annual interest. The total interest earned for the year was $730.
If x represents the amount invested at 5% annual interest, write expression for the amount invested at 8% annual interest. ( 2 points)
Write an equation in x that models the conditions. ( 3 points)
Solve the equation to find how much was invested at each rate. ( 3 points)
Answers
Let's assume that x represents the amount invested at 5% annual interest. Since the total amount invested is $11,000, the amount invested at 8% annual interest can be represented as (11,000 - x).
The interest earned from the 5% account can be calculated as 0.05x, and the interest earned from the 8% account can be calculated as 0.08(11,000 - x).
The total interest earned for the year is given as $730. Therefore, we can write the equation:
0.05x + 0.08(11,000 - x) = 730
To solve this equation, we can distribute 0.08 to both terms within the parentheses:
0.05x + 0.08 * 11,000 - 0.08x = 730
Simplifying further, we get:
0.05x + 880 - 0.08x = 730
Combining like terms, we have:
-0.03x + 880 = 730
To isolate x, we subtract 880 from both sides:
-0.03x = 730 - 880
Simplifying the right side:
-0.03x = -150
Finally, we divide both sides by -0.03 to solve for x:
x = -150 / -0.03
x = 5000
Therefore, the amount invested at 5% annual interest is $5,000, and the amount invested at 8% annual interest is (11,000 - 5,000) = $6,000.
In summary, $5,000 was invested at 5% annual interest, and $6,000 was invested at 8% annual interest.
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what is construction production
Answers
Answer:
The production in construction index is a business-cycle indicator which measures the monthly changes in production of buildings (residential and non-residential) and of civil engineering (roads, railways, bridges, tunnels, utility projects).
T F Credit reports are issued monthly, so you know how much money topay toward your credit card bill.
Answers
Answer:
False
Explanation:
A financial statement can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Generally, financial statements are issued to recipients on a monthly basis.
A credit report can be defined as a financial document that comprises of detailed information about a person's credit history or activities with respect to borrowed money (loans). It is usually prepared by a credit bureau.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender.
In conclusion, credit reports are issued to a customer on request and at any given time, so he or she knows how much money to pay toward your credit card bill.
in an economy with constant velocity, a real gross domestic product growth rate of 2 percent, an ex ante real interest rate of 3 percent, and a money supply that is expected to grow at 7 percent, the nominal interest rate would be percent.
Answers
The nominal interest rate would be 12%. Nominal interest rate is the percentage rate of interest that is quoted on a loan or deposit, without adjusting for inflation.
Nominal interest rate is the interest rate as it is stated, without any adjustment for the effect of inflation on the purchasing power of the money that will be received. It is the rate of interest that borrowers pay on loans and the rate of interest that depositors receive on savings and other deposit accounts.
To determine the nominal interest rate you can use this formula:
Nominal interest rate = Real GDP growth rate + Ex ante real interest rate + Expected growth rate of money supply
In this case:
Nominal interest rate = 2 percent + 3 percent + 7 percent
Nominal interest rate = 12%
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What are four important factors to remember before making a career decision?
Answers
Answer:
To make a career decision you need to focus on four really important things.
1. You should know what interests you and what do you want to keep on pursuing in the future.
2. Evaluate your skills that are you even capable of doing that work that interests you or are you suitable for some other work.
3. Work attitudes, meaning that do you really have the attitude for the work?
4. Training and Education, this means that are you qualified enough for that specific work.
Explanation:hope it helps
taxes on imports which are levied specifically to raise money are called__
Answers
Taxes on imports which are levied specifically to raise money are called customs duties.
Customs duties are a type of tax that governments impose on goods imported into or exported from a country to regulate trade, protect domestic industries, and raise revenue. The main purpose of customs duties is to generate revenue for the government by collecting duties on imported goods.
What are customs duties?
Customs duties are taxes that a government levies on goods that are imported into or exported from a country. Customs duties are levied to regulate trade, protect domestic industries, and generate revenue. Customs duties are typically calculated as a percentage of the value of the imported goods. The government imposes customs duties to encourage domestic production of similar goods, reduce the amount of imported goods, and generate revenue for the government.What is the purpose of customs duties?Customs duties are levied by governments to regulate trade, protect domestic industries, and generate revenue. The primary purpose of customs duties is to raise revenue for the government by collecting duties on imported goods. Customs duties are used to encourage domestic production of similar goods, reduce the amount of imported goods, and generate revenue for the government. The government may also impose customs duties to protect certain domestic industries from foreign competition.
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Q3(40P). The purchased and installation costs of some pieces of equipment are given as a function of weight rather than capacity. An example of this is the installed costs of large tanks. The 1980 cost for an installed aluminum tank weighing 100,000 lb was $390,000. For a size range from 200,000 to 1,000,000 lb, the installed cost-weight exponent for aluminum tanks is 0.93. If an aluminum tank weighing 700,000 lb is required, what is capital investment needed in 2002? Notice: If you can't find exponent (x), you can use the value 0.6 Marshall & Stevens Installed equipment indexes Year All 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Chemical Engineering Plant Cost Index A B C D Process 943 954.2 358,2 967 965.0 359,2 991 990.0 368,1 1027,5 1028.3 381,1 1039,2 1040.0 381,7 1057,0 386,5 1059.5 389,5 1071.1 390,6 1089.0 1091.6 394,1 1093,9 1091.3 394,3 1094,9 1113.8 395.6 1120.2 1120.1 402.4 1056 1062 1075 Marshall &Stevens Installed equipment indexes Chemical Engineering Plant Cost Index All Process A B C D Si 599,4 592,0 238,7 659,6 668.8 261,2 721,3 752.2 297,0 745,6 764.6 314,0 760,8 775.3 316,9 780,4 799.0 322,7 789,6 803.0 325,3 797,6 807.1 318.4 813,6 832.5 323,8 852,0 864.5 342,5 895,1 907.3 355,4 915,1 924.3 358,3 921 941.2 361,3 Year 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990
Answers
The capital investment needed in 2002 for a 700,000 lb aluminum tank is approximately $810 million.
To calculate the capital investment needed in 2002 for an aluminum tank weighing 700,000 lb, we need to use the installed cost-weight exponent for aluminum tanks and adjust for inflation using the Marshall & Stevens Installed equipment indexes.
Given:
Weight of the aluminum tank = 700,000 lb
Installed cost-weight exponent for aluminum tanks = 0.93
1980 installed cost of a 100,000 lb aluminum tank = $390,000
To calculate the capital investment needed in 2002, we will follow these steps:
Step 1: Calculate the cost of a 700,000 lb aluminum tank in 1980.
Cost = (Weight / 100,000)^exponent * 1980 installed cost
Cost = (700,000 / 100,000\()^0^.^9^3\) * $390,000
Step 2: Adjust the 1980 cost to 2002 using the Marshall & Stevens Installed equipment indexes.
Adjusted Cost (2002) = Cost (1980) * (Chemical Engineering Plant Cost Index (2002) / Chemical Engineering Plant Cost Index (1980))
Step 3: Look up the Chemical Engineering Plant Cost Index values for 1980 and 2002.
Chemical Engineering Plant Cost Index (1980) = 1056
Chemical Engineering Plant Cost Index (2002) = 1075
Step 4: Calculate the capital investment needed in 2002.
Capital Investment (2002) = Adjusted Cost (2002) * Marshall & Stevens Installed equipment index (2002)
Now, let's calculate the capital investment needed in 2002:
Step 1:
Cost = (700,000 / 100,000\()^0^.^9^3\) * $390,000
Cost = 2.37 * $390,000
Cost ≈ $923,000
Step 2:
Adjusted Cost (2002) = $923,000 * (1075 / 1056)
Adjusted Cost (2002) ≈ $938,033.33
Step 3:
Marshall & Stevens Installed equipment index (2002) = 864.5
Step 4:
Capital Investment (2002) = $938,033.33 * 864.5
Capital Investment (2002) ≈ $810,074,274.17
Therefore, the capital investment needed in 2002 for an aluminum tank weighing 700,000 lb is approximately $810,074,274.17.
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Assume that an economy is initially in long-run equilibrium. Explain the short-run effect of monetary policy that causes an increase in interest rates.
Answers
The short-run effect of monetary policy that causes an increase in interest rates is a decrease in the money supply or an increase in the policy interest rate set by the central bank.
1. In long-run equilibrium, an economy is operating at its potential output level, with stable prices and full employment.
2. When the central bank decides to implement a contractionary monetary policy, it aims to reduce inflationary pressures or curb excessive economic growth.
3. One way the central bank can achieve this is by reducing the money supply in the economy.
4. By reducing the money supply, the central bank makes borrowing more expensive for banks, businesses, and individuals.
5. As a result, banks raise the interest rates they charge on loans to compensate for the reduced availability of money.
6. Higher interest rates discourage borrowing and spending, which leads to a decrease in investment and consumption in the short run.
7. Decreased investment and consumption can result in a slowdown in economic activity and potentially lead to a decrease in aggregate demand.
8. The decrease in aggregate demand can, in turn, put downward pressure on prices and wages, helping to reduce inflationary pressures.
9. The increase in interest rates also affects financial markets. Bond prices tend to decrease when interest rates rise, as higher interest rates make existing bonds less attractive compared to new ones with higher yields.
10. Overall, the short-run effect of monetary policy that causes an increase in interest rates is a decrease in borrowing and spending, which can lead to a slowdown in economic activity and help control inflation.
To summarize, when the central bank implements a contractionary monetary policy by reducing the money supply or increasing interest rates, it discourages borrowing and spending, which can lead to a short-run decrease in economic activity and help control inflation.
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Select the best answer for the question.
2. Which functional area in a retail store usually manages the on-site revenue generation, administration, and reports on the center's expenses?
O A. Finance
O B. Information Technology (IT)
C. Human Resources
O D. Visual Merchandising
Answers
Answer:
Human resources
Explanation: