Eagle Equipment Corporation discharges Jay, who then sues Eagle for employment discrimination under Title VII. Eagle learns that
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Answer:
During the first year, the marginal cost equals approximately the minimum EUAC cost. This is why the minimum cost of EUAC to maintain the defender throughout the year is $21,000. Since the minimum EUAC cost to maintain the defender the first year is less than the minimum EUAC cost to the challenger, the defender should not be substituted. This means, it is not economically feasible to make the replacement at this time.
Explanation:
According to the exercise, it is necessary to evaluate to know if it is economic to replace the defender by the challenger. For the calculation, the defender's information is: the defender's market value up to $3000. The expenses are $20000. The information regarding the challenger is: the installation cost $30000, the annual expenses $ 16000, the surrender value $ 2000, the economic life is 12 years, and the interest rate before taxes is 15%.
The minimum EUAC for the challenger is equal to:
The minimal cost is equal to:
Answer:
a) The gross cost per household per year of this policy is $2 per household.
b) The policy's benefit per sugar producer per year is $2,500 per producer.
Explanation:
This tariff policy affects households, that loss consumer surplus, and sugar producers, which have a producer surplus gain.
The loss in consumer surplus due to the tariff will be $100,000 per year.
If there are 50,000 households in Sugarland, the cost per household is:
The gross cost per household per year of this policy is $2 per household.
The benefit per sugar produced can be calculated as the total benefit per year (producer surplus) divided by the total amount of sugar producers:
The policy's benefit per sugar producer per year is $2,500 per producer.