Markov manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. the firm expects that this equipment will have a useful life of five years, and its marginal corporate tax rate is 35%. the company plans to use straight-line depreciation.

a) what is the annual depreciation expense associated with this equipment?

b)what is the annual depreciation tax shield?

c)rather than straight-line depreciation, suppose markov will use the macrs depre- ciation method for the five-year life of the property. calculate the depreciation tax shield each year for this equipment under this accelerated depreciation schedule.

d) if markov has a choice between straight-line and macrs depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which schedule should it choose? why?

e)how might your answer to part (d) change if markov anticipates that its marginal corporate tax rate will increase substantially over the next five years?

Consider a two-firm industry. firm 1 (the incumbent) chooses a level of output q1. firm 2 (the potential entrant) observes q1 and then chooses its level of output q2. the demand for the product is p = 100 - q, where q is the total output sold by the two firms which equals q1 +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of q1 and q2 keeping in mind that firm 1 chooses q1 first and firm 2 observes q1 and chooses its q2. find the profits of the two firms-? 1 and ? 2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of q1 would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of q1? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f > 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q1, denoted by q1b, as a function of f. next, derive the expression for firm 1

On average, someone with a bachelor's degree is estimated to earn times more than someone with a high school diploma. a)1.2 b)1.4 c)1.6 d)1.8

Read the scenario. alfonso is 19 years old and has a high school diploma. recently, he was promoted to assistant manager at the fast-food restaurant where he has worked since the age of sixteen. his dream is to become the restaurant’s manager. what is his best option for achieving his dream? he should find another job and work his way up to a higher position. he should hope that his manager transfers to another location and that he is his replacement. he should attend classes at the local college to receive training in management. he should work hard, work longer hours, and remain assistant manager.