Business, 30.11.2020 17:40 Lovergirl13
The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,000, and will dramatically improve the speed at which his counter staff will be able to take orders, and reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing the capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology?
a. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.
b. He should ignore the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system.
c. He should include half of the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system.
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Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.
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The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on...
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