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Part D please.

Paragraph course in Florida and you need to determine how many golf carts you need to buy to maximize profits. Please answer

d) Now suppose the (local) government with all their financial shortfalls embarks on campaign to raise revenue to fund the fi

Paragraph course in Florida and you need to determine how many golf carts you need to buy to maximize profits. Please answer the following questions given the 1. You own a golf information below. golf cart costs 2000 rounds of golf and the rate of depreciation is A brand new 5%. The real interest rate is 8% The expected marginal product of capital is given by MPKf 1000 10K. What is the user cost of capital and what is it expressed in? a) (.05+.08)*2000-260 260 uc b) How many golf carts should you buy to maximize profits (i.e., what is K*)? 1000-10K 260 74 K*-
d) Now suppose the (local) government with all their financial shortfalls embarks on campaign to raise revenue to fund the fire department by imposing a so-called "luxury tax" (we know it as t) equal to 20% of gross revenue What happens to the profit maximizing number of golf carts? Please show all work and round to two decimal places when needed. K* - uc LC
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Afterr dax user cosl S capilal n (R+PK Mse Cost I- 2 000 (o08+005) \ - o 2 325 MPKF New eawili briunm: user casl 325 EIO0O -

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