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Should NewTech's computer system be replaced this year? The system has a salvage value now of $5000, which will fall to $4000 by the end of the year. The cost of lower productivity linked to the older computer is $3000 this year. NewTech uses an interest rate of 15%. What is the cost advantage of the best system? A potential new system costs $12,000 and has the following salvage values and lost productivity for each year.
Suppose that a cost minimizing firm with two inputs, capital K and labour L recently increased the quantity of each inputs by 10%.
A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer's optimal consumption bundle will change despite them being able to afford their original ..
Conduct some research on the future of the Social Security programs. Based on your research, describe your view of the Social Security programs
Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations?
From 1970 to 1983, corporations expanded impressively in number, receipts, and assets. In numbers and receipts, at least, the picture is dominated by firms with assets no more than one million dollars. If the proportion of output produced by large fi..
How does complexity in business process such as procurement (purchasing) cause an increase in cost?
What are some examples of behavior that at one time wire victimless crimes that are no longer criminal.
The opportunity cost of a new public highway is the:
In an application of the Harrod-Domar model, suppose the only final-goods industry in a country is the making of cotton shirts. The factories, machinery and warehouses used in production were purchased previously and are still worth $3 billion. Each ..
You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility?
For competitive firms, marginal revenue. A company should produce up to the point where MR=MC. A tax in a market with a very elastic supply and relatively inelastic demand results in:
The North Arctic Rangers Federation (NARF) bought a $32,500 car.The loan has monthly payments of $610.34 for 5 years. What is the interest rate (APR) on the loan? What is the effective rate?
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