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A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8760 hours per year. The motor's efficiency is 90%. Because the motor is fairly large, a demand charge of $90 per kilowatt per year will be incurred in addition to an energy change of $0.08 per kilowatt-hour. If the installed cost of the motor is $3,500, what is the present worth of the motor over a 10 year period when the MARR is 15% per year?
Tony spends $36 per month on cookies. For him, chocolate chipcookies and peanut butter cookies are perfect substitutes.Chocolate chip cookies are $4 per dozen and peanut butter cookiesare $3 per dozen.
Scientists at Los Alamos are price takers. They can sell patentable ideas for $1. Consider the production of patentable ideas. If the only input is labor (the scientists time), and the scientist could also be earning $10/hour in outside work.
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of factors are cited to explain the large price inc..
The economy of Sonrisa has 1000 people in three income categories: poor, middle class, and rich. The poor ear $500 per year and have to spend it all to meet their consumption needs. The middle class earn $2,000 per year, of which $1,500 is spent a..
Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is U(S,T) = 2 ST. What is her marginal utility from shoes
Suppose a monopolist faces the following demand curve: P = 180 - 4Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist's profit maximizing level of output
If the demand and supply curve for computers are: D = 100 - 6P, S = 28 + 3P where P is the price of computers, what is the quantity of computers bought and sold at equilibrium.
Using the following information, calculate total utility and marginal utility. a. Plot the total utility curve. b. Plot marginal utility directly below total utility. c. At what marginal utility value does total utility reach a maximum Number of unit..
What output, price, and profit levels would prevail following expiration of the company's monopoly franchise assuming that vigorous competition evolves between the local cable TV company, voIP firms, and Big Phone, Inc. Assume that a long-run perf..
Mensa's total cost of production, TC, is given by the equation TC = 5,000 + 5*q*q, where q is Mensa's output. Based on this equation, Mensa's marginal cost is 10q. If the output price is $100, what is Mensa's short-run profit maximizing output
If the newer equipment is purchased, it will have end-of-year O&M costs of $8,000 and a salvage value of $20,000 at that time. If the old equipment is retained, it will have to be supplemented in years 3, 4, and 5 by leasing a hi-def add-on unit c..
If the price of pork chops falls from $8 to $6, and this leads to an increase in demand for apple sauce from 100 to 140 jars, what is the cross price-elasticity of apple sauce and pork chops at a pork chop price of $6
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