Synergy and Dynaco are the only two firms in a specific high-tech industry. They face the following payoff matrix as they decide

Answer:

The correct answer is "600000".

Explanation:

The values provided are:

Cost of office furniture,

= $100,000

Cost of the computer system,

= $500,000

• The revised MACRS allows a corporation to gradually reduce the mortgage balance of such depreciating assets.
• In the initial years, MACRS permits accelerated depreciation but then slows down the process. This is advantageous for businesses from a taxation perspective.

Now,

The cost recovery deduction is calculated as:

=

Substituting the values gives us

=

=

Answer:The marginal propensity to consume (MPC) is 0.65

The multiplier or k = 2.85714 rounded to 2.86

Explanation:

The MPC pertains to the fraction of additional disposable income that consumers choose to spend. It is used to gauge the consumption increase driven by rising income.

Answer:

He is less likely to spend on scones.

Explanation:

To understand spending habits, one must consider various factors involved in purchasing.

1. Income: Some individuals have a tight budget, which leads them to reduce expenses affecting their spending capabilities. Jose may find purchasing scones less problematic since they are low-cost items, thus indicating a negative correlation.
2. Substitution: This could influence Jones’ spending on scones since he typically buys both together; if he stops his coffee purchases, he may also forgo buying scones.