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The New England Soap Company is considering adding some processing equipment to the plant to aid in the removal of impurities from some raw materials. By adding the processing equipment, the firm can purchase lower-grade raw material at reduced cost and upgrade it for use in its products. Four different pieces of processing equipment are being considered
The company can obtain a 15% annual return on its investment in other projects and is willing to invest money on the processing equipment only as long as it can obtain 15% annual return on each increment of money invested. Which one, if any, of the alternatives should be selected? Use a challenger-defender rate of return analysis.
Emily Dorsey's current salary is $85,000 per year, and she is planning to retire 19 years from now. She anticipates that her annual salary will increase by $1,000 each year ($85,000 the first year, to $86,000 the second year, $87,000 the third year, ..
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
What happens to the aggregate demand curve when transfer payments are increased by $100 million, and the government raises income taxes $100 million in the same month to pay for the transfer payments?
The International Monetary Fund (IMF) has recently released a report calling for tax increases in the world’s wealthiest nations what the IMF calls "revenue-maximizing top income tax rates". Analyze the economic impact of this proposal should it be e..
What actions has the ECB taken over the last year and what were their goals? In September 2016, ECB President Mario Draghi defended the ECB's actions before German policymakers.
One interesting facet of delivery we looked at was ambulatory services; we saw how ambulatory care went from being provided outside the hospital setting, to becoming a service within the hospital, and now is moving outside the hospital once again. W..
In earlier topics, you explored the tenet of conscious leadership and the influence of self-awareness on your leadership style. You established that a clear understanding of your abilities, motivation, and goals provides a firm foundation for leading..
Under the binding price ceiling (one that actually effects the market), what does the change in consumer surplus represent?
What is a shadow price and how can business managers use it to make decisions? Formulate and write out the following linear programming problem. You do not need to solve this just specify the objective function, decision variables, and relevant const..
A U.S. government bond matures in 10 years. Its quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond’s face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..
a) You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b) The government is interested in whether increases in defense spending are affecting the price level.
she a reservation wage of $1,500 so that wage package is W = 1,500 + .2 Q where the CEO sets the incentive at .2 and Q = 200 e. If the CEO increases the incentive from .2 to .25, what happens to the Nelson's effort? Will profits rise or fall?
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