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anzhelika [568]
3 years ago
12

There are 800 consumers in an economy that each have the same utility function given by U(c, l) = 32√ c − (24 − l)2 where c is t

heir consumption and l is the number of hours they spend for leisure. A single firm serves the market with production function Y = 32L1/2K1/2 . The firm cannot choose its capital stock, which is fixed at K = 1600. You can assume the price level is equal to 1 so real and nominal wages are equivalentQuestion: Solve for an individual consumer’s labor supply as a function of the real wage and total supply of labor hours for the economy in one day as a function of the real wage (hint: you will need to use the budget constraint to cancel out consumption)
Business
1 answer:
borishaifa [10]3 years ago
8 0

Answer:

Explanation:b

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The aftertax salvage value of the machine is D) $10,134

Explanation:

Hi. first, we need to find out the book value of the machine at the selling date, that is 3 years from now, and the book value is as follows.

BookValue=90,000-90,000*0.3333-90,000*0.4444-90,000*0.1482=6,669

Since taxes are based on the profit you make by selling something, our profit is:

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Therefore, our taxes are:

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So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:

Salvage Value of the Machine = $12,000 - $1,866?= $10,134

That is option D)

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