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Lora, Missouri, must either contract out its landfill operations or build a new municipal landfill. The city uses a discount rate of 5%, and the city engineer is required to use benefit/cost ratios. Which plan should she choose, and on which ratio(s) should she base the decision? Both sites have lives of 20 years.
How would you do question 1 part A? Do you integrate the total cost and total benefit functions? And how would you find the price to charge the customers?
When the price of bananas is 50 cents a pound, the total demand is 100 pounds. If the price elasticity of demand for bananas is −2, what quantity would be demanded if the price rose to 55 cents a pound?
The engineering firm is considering to keep the crane for future projects. The cost of the crane is the one described in problem 2 (including transportation costs). Its market value at the end of year one will be $300,000 decreasing by 15% every year..
Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10 billion, then would national saving increase or decrease, and by how much?
In an asymmetric market for used cars, which of the following could be used to avoid a thin market?
Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans.
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients.
Explain what a feasibility analysis is and why it's important - Describe business models and discuss their importance
What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital a..
Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
Using the concept of economies of scale to explain the two companies' argument that it is now necessary for CSR and Boral to merge.
The Malthusian population trap model implies that
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