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blsea [12.9K]
4 years ago
10

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.

Business
1 answer:
trapecia [35]4 years ago
5 0

Answer:

a. The effect of government regulation on a monopolist's production decisions: microeconomics

b. The government's decision on how much to spend on public projects: macroeconomics

c. The effects of the Internet on the pricing of used cars: microeconomics.

Explanation:

Le re-visit the concept of microeconomics and macroeconomics before we apply them to solve the problem.

Microeconomics studies about the behavior of players and how players in the economy ( individuals, households, firms) making decision of resources allocation, how they interact with one another. Thus, it usually studies about market of goods and services.

Macroeconomics studies about economy as a whole, that is, its structures, performances, behavior ( e.g: inflation, unemployment, GDP growth)

a. is microeconomics because it is about how monopoly firms decide its production level given changes in government's regulations.

b. is macroeconomics because it is about public spending ( spending for the whole economy)

c. is microeconomics because it is about how market of used cars is affected ( in term of pricing) as sellers and buyers have new ways of delivering/finding information and connections.

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The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $21,000,
Nadya [2.5K]

Answer: 18.8%

Explanation:

Simple rate of return on investment = Incremental net operating income / investment

Incremental net income = Operating savings - Annual cost

= 145,000 - 420,000/6 years

= $75,000

Net investment = Cost of new machine - salvage value of old

= 420,000 - 21,000

= $399,000

Return on investment = 75,000/399,000

= 18.8%

6 0
3 years ago
Which of the following will always be true when an economy is in long-run equilibrium?
Maurinko [17]
How are we going to answer without the choices?
7 0
4 years ago
You are an American real estate mogul. You have just purchased a chain of boutique hotels in the Swiss Alps for CHF 35,000,000.
IRINA_888 [86]

Answer:

Since the investor is from the US and purchases a hotel in Swiss Alps for CHF 35,000,000, the investor will have to pay interest in the currency CHF.

In order to hedge the currency risk the investor can go for SWAPS where he will recieve the interest in CHF and pay in USD.

Cash flow:

Notional amount = $35,000,000

exchange rate = CHF 1 / USD

Bid price is 5.25% for CHF hence when an investor goes into swap contract then he will get 5.25%. Similarly for USD when investor pays in USD then he will have to pay the ask rate of 8.85%.

The investor will pay 8.85% interest rate in USD and get the 5.25% interest rate in CHF. This interest can be used to pay the interest on loan

6 0
4 years ago
The quantity demanded of cereal increased from 1,350 to 1,700 when the price of milk decreased from $2.05 to $1.65. What is the
STALIN [3.7K]

Answer:

-1.33

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are -substitute goods.

Substitute goods are goods that can be used in place of another good.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Cross Price elasticity of demand = percentage change in quantity demanded of good A / percentage change in price of good B

percentage change in quantity demanded of good = (1700/ 1350) - 1 = 0.259

percentage change in price = (1.65 / 2.05) - 1 = -0.195

0.259 / -0.195 = -1.33

7 0
3 years ago
Excellent Yachting is considering acquiring Turquoise Tours. Management believes Turquoise Tours can generate cash flows of $218
xeze [42]

Excellent Yachting will pay  $519,799.59.

<h3>What will be the calculation of resent value of a lump sum?</h3>

The calculation of the present value of a lump sum for each cashflow considering the 14.5% discount rate would be as follow:

PV=nominal value/(1+i)n

rate: 0.145

Year I,  218,000/(1+0.145)1 = PV

             = 190,393.0131

Year II,  224,000/(1+0.145)² = PV

            = 170,858.6793

Year III,  238,000/(1+0.145)³ = PV

            = 158,547.9011

By adding each PV value together, we will get 190,393.0131+170,858.6793+158,547.9011 = $519,799.59

Learn more about the PV here:-

brainly.com/question/15432294

#SPJ1

5 0
2 years ago
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