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A new water treatment plant proposed for Any town, USA, has an initial cost of $6M. The new plant will service the 7500 residential customers for the next 30 years. It is expected to save each customer $125 per year. The plant will require a major overhaul every 5 years, costing $1M. Determine the benefit/cost ratio at the city's interest rate of 6%.
Popular movements like "buy/shop local" seem to contradict the principle of specialization according to comparative advantage. How does the theory of comparative advantage influence your opinion on these movements and why?
What is the present value of innovation to the innovating firm? In a patent race, what might each firm be willing to spend on research and development?
Which of the following fiscal policy actions will result in the greatest increase in Real GDP?
The demand curve for fire extinguisher slopes downward and supply curve for fire extinguishers slopes upward. The production of the 500 fire extinguisher entails the following, a private cost$10,an external cost of $0, a private value of $9, an exter..
Can a financial system exist without the concept of interest? Can you conceive of an economy in which money has no time value? What are the factors that underlie interest rate changes? Also, is the efficient market hypothesis a satisfactory explanati..
Bernice’s preferences can be represented by the utility function, U(x, y) = min{x, y}. She faces prices ($2, $1), and her income is $12. If prices change to ($3, $1), the compensating variation
How does what we measure determine successful or unsuccessful outcomes. Give concrete examples of measurement and/or measurement systems and how they determine outcomes. In addition, discuss the definition of success from an individual, corporate and..
When and where did modern economic growth first happen. What are the major institutional factors that form the foundation for modern economic growth. What do they have in common.
Foods Inc (FI) sells 5 million units per year of its only product (SuperFood) through a major retailer. SuperFoods’ retail price is $5 per unit which included a margin to the retailer of 20%. alculate SuperFoods’ per unit variable cost, Calculate Su..
The demand for inputs is derived from the market demand function. With inelastic demand, aprice increase produces lower marginal and total revenue. Two products are complements if the cross-price elasticity of demand equals zero.
Suppose you manage a wine cellar with fixed storage space and you have to choose when to sell each bottle of wine. The value of each bottle V(t) is increasing over time at a decreasing rate: V' (t) > 0 and V'' (t)
We have seen that the world saw a great deal of change from 300-900 as it was transitioning from antiquity to the Middle Ages. What do you think were the TWO most significant changes/differences? Your answers can extend to religion, politics, and cul..
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