If a machine cost 50000 initially and is expected to last


If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an economist most likely would say that:

1 .the machine's cost for each of its 20 years of existence is $2,500.

2. the machine's cost for each of its 20 years of existence is $3,000.

3. during the first year the machine had no cost; it provides an implicit revenue of $10,000 to the firm.

4. the value of the machine will continue to increase 20 percent per year for the next 20 years.

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Microeconomics: If a machine cost 50000 initially and is expected to last
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