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Impact of unionization in a given scenario also evaluation of profitable investment with a given interest rate

1. Suppose which Florida migrant farm workers are effectively unionized. Illustrate what will be the impact of the unionization on?
(a) The price of Florida oranges,
(b) The profits of Florida fruit growers in the short run also in the long run,
(c) The mechanization of the fruit picking industry also
(d) The employment of fruit pickers?

2. Suppose you are contemplating the purchase of a mini computer at a cost of $1,000.00. The expected lifetime of the asset is three yrs. You expect to lease the asset to a business for $400.00 annually (payable at the end of every yr) for three yrs. If you can borrow (also lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M916348

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