Economists often disagree about the proper role of government in the economy, but they almost all agree that the government should: A) Improve the distrbution of income B) Enforce the rules of the market system C) Prevent the formation of market power D) Support industries that have been weakened by free trade Solution B) Enforce the rules of the market system.

1. economy
help please I. A privately owned sammer t camp for yumestess has the fellirwing data foe a I
Charge per Camper Fixed Costs S120/weck 548,000 session Variable Coss Camper S80week
Capaciry 500 Campers a. Develop the mathematical relationships for tolal cost and total revISE
b. What is the lotal number of campers that will alleow the camp t0 just break e. What is the
profit or loss for the 12-weck session if the cump operates al 8 capacity? 2 A paimting operation
is perfonsed by a production worker at a labor cost of $1.40 per unit. A robot spray painting r
machine, costing $15,000, would reduce the labon cost to S.20 per unit. If the device would be
valueless at the end of 3 years, what is the nimum mumber of units that would have to bave been
painled each yeas to ystity the pincase of the robot machine? 3. Aaron is buying an automobale
that costs $12,000. He will pay $2000 ely a the remaining 510,000 in four anmal end of year
principal paymems of S2500 in addition to the S2500, he mist pay 15% inicrest on the inpaid
balance ofthe ach year. Prepare a cash flow table to represent the transaction.
Solution
Note: Question 2 is being answered instead of Question 1 because data in the first line of
question 1 related to session numbers are not visible.
2.
Cost of Robot spray Painting machine = $15000
Labor cost of production worker = $1.4 / unit
Labor cost with robot machine = $.2/unit
So, Savings in labor cost = 1.4 -.2 = 1.2/unit
So,
Minimum Number of units to justify the Robot Purchase in 3 years = Robot cost / Savings per
unit
Minimum Number of units to justify the Robot Purchase in 3 years= 15000/1.2
Minimum Number of units to justify the Robot Purchase in 3 years = 12500
So,
Minimum number of units per year = 12500/ years of life = 12500/3 = 4166.67 or 4167 units