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In planning a small two-story office building, the architect has submitted two designs. The first provides foundation and structural details so that two additional stories can be added to the required initial two stories at a later date and without modifications to the original structure. This building would cost $1,400,000. The second design, without such provisions, would cost only $1,250,000. If the first plan is adopted, an additional two stories could be added at a later date at a cost of $850,000. If the second plan is adopted, however, considerable strengthening and reconstruction would be required, which would add $300,000 to the cost of a two-story addition. Assuming that the building is expected to be needed for 75 years, by what time would the additional two stories have to be built to make the adoption of the first design justified? MARR is 10% per year.
Rubax, a United States producer of athletic shoes, estimates the following linear trend model for shoe sales:
A major advantage of production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
If two people have cardinal utility functions, person1 is Utility = XY and person2 is Utility = (XY)^1/3 which bundle would they find to be best Bundle 1: Has an indifference curve of Y = 1/X
There is a big gap in the earnings of married women and married men, even if individuals of both sex have the same level of education.
Economic growth, as examined through raise in real GDP per capita, is a target for most countries. This is often interpreted as an raise in economic welfare for citizens.
The market for college hockey players is characterized by the following supply and demand curves, where Q is the number of athletes and P is the weekly wage in excess of their scholarship payments QD = 1600 - 20P, QS = -900 + 30P
Labor Supply a. Ann's utility can be represented by the function: U (C,L) = ln (C-10) + 3/5 ln(L). She has 16 hours/day to divide into work (H) and leisure (L). She has no unearned income. Derive the formula for her Marginal Rate of Substitution a..
You are attending the yearly shareholder's meeting of PIC firm. A fellow stockholder points out that manager of PIC received $100,000 last year, while the manager of a rival company, CUP Enterprises, earned only $50,000.
Consider now that there are two qualities s1 and s2 with s2 > s1 provided by two different firms 1 and 2. The timing is the following: first firms choose their qualities, second they compete in price.
qd=1000-5p mr=200-0.4q marginal cost is constant at $20. The firm is considering quantity discount. The firs 400 units can be purchased at $120 and further units at $80. How many units will the consumer buy in total
A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced can be sold for ..
Using a method similar to the consumer price index, compute the percentage change in the overall price level. Use 2009 as the base year, and fix the basket at 1 karaoke machine and 3 CDs.
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