Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

1)a) Briefly describe the law of demand

b) Differentiate between Sink cost and opportunity cost and hence describe the situation in which they are significant

c) A 50 year old man is preparing for his retirement. He plans to retire at age 65 and estimates that he can live comfortably on Rs. 1,00,000 per year in terms of today’s value. It is estimated that future rate of inflation will be 6% per year and he is able to invest his savings at 8% compounded annually. What equal amount must he save each year until he retires, so that he can make withdrawals as desired for 5 years beyond his retirement?

2)a) describe the significance of elasticity of demand in case of: i) Consumer goods ii) Producer goods.

b) Differentiate between simple interest and compound interest with a suitable ex

c) Breakeven production of a firm is 5,000 units. Its fixed cost is Rs.50,000, the variable cost/unit is Rs. 25. Find out the price of the product. How much the firm should produce to earn a profit of Rs. 25,000?

3)a) Define the following economic concepts

i. Mutually exclusive alternatives

ii. Future value of an annuity iii. Contribution Margin

b) describe the fundamental reasons for replacement of assets?

c) Five years ago conveyor system was installed in a manufacturing plant at a cost of Rs.27,000. It was estimated that the system which is still in good condition would have a useful life of 20 years. Annual operating costs are Rs. 1350. The numbers of parts to be transported have doubled and will continue at the higher rate for the rest of the life of the system. An identical system can be installed for Rs. 22,000 or a system with a 20 year life and double the capacity can be installed for Rs. 31,000. Annual operating cost is expected to be Rs. 2500. The present system can be sold for Rs. 6500. Either of the three systems will have a salvage value at retirement of 10% of the original cost. The MARR is 12%. Compare the two alternatives of obtaining the required services on the basis of equivalent annual cost over a 15 years study period, recognizing any unused value remaining in the systems at the end of that time.

4)a) describe the elements of Benefit-cost ratio for a project of constructing a new road in a rural area.

b) An asset has a first cost of Rs. 2,50,000.00 and an expected life of 10 years. The estimated salvage value of the asset at the end of 10 years is Rs. 50,000.00. If reducing balance method of depreciation is used, find, i) Undepriciated amount of capital remaining in the asset at end of 6th year ii) The depreciation charges for 4th year and 8th year.

c) A machine costs Rs. 35,000 and has a life of 17,500 hours. i) Determine the depreciation charges if the machine is used for 1,500 and 2,200 hours in the first two years respectively. ii) After 2 years if the total useful life is estimated to be 22,500 hours, find out the new depreciation rate for the 3rd year and later.

5)a) An air compressor is installed at a total cost of Rs. 80,000.00. It is estimated that the compressor would result in a saving in production cost of Rs. 10,500 per year for 15 years, with a zero salvage value at the end of 15 years. What is the expected rate of return? If the cost of capital of the organization is 12%, does this investment be feasible?

b) A company which markets micro-computers has just introduced a new line which is expected to sell for Rs. 10,000/-per system. The company offers the following payment plans for the potential customers. OPTION 1: Pay 4 equal end-of-year installments of Rs. 3,155/- each OPTION 2: Pay Rs. 14,641/- at the end of 4 years
OPTION 3: Pay Rs. 1,000/- at the end of each year for 3 years and Rs.11, 000/- at the end of 4 years. Which is the best option for a customer; and to the company; if the money worth is 8%?

c) What quarterly interest rate is equivalent to an effective annual rate of 6%?

6)a) Briefly describe minimum cost analysis?

b) Derive an expression for annual and book values according to Sum-of-the-years Digits method.

c) A bridge is being considered across a stream. The superstructure will be made of steel and will have a weight per meter depending on the span between the piers in accordance with W= 14S+950 where S=span length and W=weight in kgs. Piers will be made of concrete and will cost Rs. 9,50,000 each. Superstructure can be erected at a cost of Rs.30/-per kg. If the number of piers required is to be one less than the number of spans, find the number of piers that will result in a minimum total cost fro piers and superstructure if the length of the bridge is 375 meters? Also determine the minimum total cost?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M94478

Have any Question? 


Related Questions in Microeconomics

Goal construct a case studyresearch paper that examines a

Goal: Construct a case study/research paper that examines a firm in the U.S. from a microeconomic standpoint and provide suggestions based on your findings. Step 1: Choose a firm for your focus. In addition to picking a ...

Assignmentteamworkhow does effective teamwork look how is

Assignment Teamwork How does effective teamwork look? How is teamwork displayed in your life as it relates to your current role? Why is teamwork a necessity for organizations? Does this help or hurt an organization if te ...

Mcdonalds and the hindu culturein many ways mcdonalds

McDonald's and the Hindu Culture In many ways, McDonald's Corporation has written the book on global expansion. Every day, on average, somewhere around the world 4.2 new McDonald's restaurants are opened. By 2003, the co ...

Questionsexercisesseminar 11nbsp discuss what you

Questions/Exercises Seminar 1 1.  Discuss what you understand by the following: a) the law of demand b) the conditions of demand c) a demand curve d) a normal good e) an inferior good f) a Giffen good G) the law of suppl ...

Milestone projectmilestone one propose organization for

Milestone Project Milestone One: Propose Organization for Analysis In Module Three, you will select the organization you would like to analyze in part two of the final project using the U.S. Securities and Exchange Commi ...

E8-9 periodic versus perpetual entries fong sai-yuk company

E8-9 (Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan 1 Inventory 100 units at $5.00  each Jan 4 Sale 80 units at $8.00  ...

Assignmentthere is the widespread notion that economists

Assignment There is the widespread notion that economists rarely agree with each other. This seems perplexing when we note also that economics is often called the "Queen of the Social Sciences" (meaning that it is the mo ...

Assignment 1 -i watch the videos on demand and supplythere

Assignment 1 - I) Watch the videos on Demand and Supply There are 5 changes in Demand that shift the demand curve to the right or left.  They are Change in Tastes and Preferences Change in Income Change in Population Cha ...

Assignmentyou will submit your second comprehensive summary

Assignment You will submit your second comprehensive summary (4-5 pages) regarding your final progress report. If you are still in your original business, what lessons did you learn? If not, what went wrong? What improve ...

Question 1which of the following has not been identified as

Question 1 Which of the following has NOT been identified as a basic consumer right? Consumers have a right to safe products. Consumers have a right to collude. Consumers have a right to be informed about a product. Cons ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro