Answer:
The correct answer is
d. lower interest rates and greater investment.
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Answer:
c. you need a lot of money to buy a home
Explanation:
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Answer:
a. $0.20
b. $322,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
.
The amount of depreciation to be recognized for each mile that a rental automobile is driven
= ($15,000 - $6,000)/45,000
= $9,000/45,000
= $0.20
Total millage expected of the 60 cars before disposal
= 60 * 45,000 miles
= 2,700,000 miles
The total amount of depreciation expense that Central Auto Rentals should recognize on this fleet of cars for the year
= 1,610,000/2,700,000 * ($9,000 * 60)
= $322,000
Answer:
a) Y = 500
b) Wages: 2.5
Rental price: 2.5
c) labor Share of output: 0.370511713 = 37.05%
Explanation:

if K = 100 and L = 100


Y = 500
wages: marginal product of labor = value of an extra unit of labor
dY/dL (slope of the income function considering K constant while L variable)





With K = 100 and L = 100

Y' = 2.5
rental: marginal product of land = value of an extra unit of land
dY/dK (slope of the income function considering K variable while L constant)



L = 100 K = 100

Y' = 2.5
c) we use logarithmic properties:



50 was the land while 10 the labor
2.698970004 = 1.698970004 + 1
share of output to labor: 1/2.698970004 = 0.370511713