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A corporation bought a machine for $100,000 four years ago. It was being depreciated on a straight-line basis over five years. The company decides to replace this machine today with a more productive machine that costs $125,000. The old machine can be sold today for $25,000. The income tax rate is 40%. The net initial investment in the new machine is
$125,000$100,000$105,000$102,000
Discuss the changing economic variables in China that influenced McDonald's expansion strategies.
Elucidate how the price level will be affected by these expenditures in the short-run. Explain how GDP is affected in the long-run.
Compute the equilibrium interest rate. Compute the amount of investment demand, private saving, and national saving at the equilibrium interest rate.
Most of the critics argue that America has too many elections, a surplus of elected officials, and unwieldy layers of government.
Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Consider the marketplace for personal computers. Suppose that the demand is stable: the demand curve doesn't change.
Illustrate what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET BUYER of government bonds.
A child of a wealthy family is deciding either to work or not work also mooch off her parents. Asume that she is offered a job which pays.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Suppose the marginal expense of hiring another worker is $150 and the marginal expense of hiring current workers for an extra hour is $10.
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