If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:
A. during the first year the machine had no cost; it provided a revenue to the firm.
B. the value of the machine will continue to increase 20 percent per year for the next 20 years.
C. the machine's cost for each of its 20 years of existence is $3,000.
D. the machine's cost for each of its 20 years of existence is $2,500.
Answer: D
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Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Market demand is Q = 600,000 - 100p. Derive the short-run equilibrium Q, q, and p. Does the typical firm earn a short-run profit?
What will be an ideal response?
In a situation of mutual interdependence and identical products, managers of oligopolistic firms ________ attempt to differentiate their product to earn ________ economic profit.
A) should; positive B) should not; positive C) should; negative D) should; zero
In general, speculators tend to make a floating exchange rate system more stable
a. True b. False Indicate whether the statement is true or false
Liquidity refers to
a. the ease with which an asset is converted to the medium of exchange. b. the measurement of the intrinsic value of commodity money. c. the measurement of the durability of a good. d. how many time a dollar circulates in a given year.