The Smelting Department of Kiner Company has the following production and cost data for November. Production: Beginning work in
1 answer:
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Answer:
1. a. Average Tax rate = 130/2,000 = 6.5%
Marginal Tax Rate = (130 - 0)/ (2,000 - 0) = 6.5%
b. Average Tax rate = 650/10,000 = 6.5%
Marginal Tax Rate = = 6.5%
c. Average Tax rate = 1,300/20,000 = 6.5%
Marginal Tax Rate = = 6.5%
d. Average Tax rate = 6,500/100,000 = 6.5%
Marginal Tax Rate = = 6.5%
2. The tax rates shown in this table are: <u>Proportional</u>
Proportional Taxes take the same percentage of income across all income groups.
3. A. True
4. Sean and Bob would both vote yes as the Marginal Benefit of the project exceeds their marginal cost but project will not be funded in the end as the Total Marginal Cost exceeds Total Marginal benefit. Sean and Bob may want to pay but Yvette will not.
5. If this same project were taking place in the private sector, a firm <u>would not</u> fund the project.
6. In private markets, decisions to provide goods or services to the market are generally made if marginal benefits <u>exceed</u> marginal costs
7. As a result, governments may approve projects whose costs <u>exceed</u> their benefits.
Answer:
a-The average weekly profit is $1767.31
b- The probability of having a weekly profit of more than 2000 is 0.1587 or 15.87%.
Explanation:
a
The weekly average profit for the simulation is given where first the values are simulated using R which is given as below:
x<-round(rnorm(n,m,s))
Here
- round converts all the values of the simlation to integer.
- rnorm is the command for simulation
- n is the number of values which is 52 in this case
- m is the mean of the values which is 35
- s is the value of standard deviation which is 5 cases.
The values of x are as follows
[1] 36 49 30 29 34 36 32 28 32 29 32 27 40 32 30 37 43 30 42 30 31 34 36 38 28 29 32 42 36 35
[31] 37 41 34 39 37 46 34 44 45 41 41 29 36 38 35 32 36 39 30 38 40 27
Now using these values, the average of the simulation values is cacluated as follows:
mean(x)
35.3462
Now using this with the value of profit of $50 gives:
Average Profit=$50 x 35.3462
Average Profit=$1767.31
The average weekly profit is $1767.31
b-
First number of cases are required so that the value will be greater than 2000 it is given as
Number of cases=2000/50=40
So firstly the Z-score is calculated which is as below:
Now the probability is given as
The value of P(Z<1) is calculated from the table which is given as
0.84134
So the equation becomes
So the probability of having a weekly profit of more than 2000 is 0.1587 or 15.87%.