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A new electric power generation plant is expected to cost $43,250,000 to complete. The revenues generated by the new plant are expected to be $3,875,000 per year, while operational expenses are estimated to be $2,000,000 per year. The plant will last 40 years, and the electric authority uses a 3% interest rate. Determine the benefit/cost ratio. Determine the payback period for the plant.
List three examples of government price controls other than those mentioned in the chapter. For each example, explain why government enacts the price control.
Suppose the monthly demand for soda by a consumer is given by Q=10 - 8P . A/ If the price of soda is $1 per can, how many sodas will the consumer purchase in a typical month? B/ what is the elesticity of demand for soda?
Country (A) bubble was obvious. During the mid-2000s, it went from being a country that specialized in flowers and iron and ore smelting to a country that specialized in global finance. Country (A) biggest banks grew to 10 times the size of their eco..
Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $1,500,000. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be $225,000, $195,000, $165,000, and $110,000, res..
After much experimentation and trial and error, TechSmart launched a GPS-enabled shoe into the market. It was the ±rst company to introduce such footwear. Later, several other ±rms also began to o²er similar shoes. Which of the following is most like..
DIMINISHING MARGINAL PRODUCT - Suppose you are the owner of any type of hypothetical start-up business. Suppose your total revenue is currently increasing when you use more inputs (materials, labor, machines, etc). Do you think you are maximizing the..
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price i..
In January of 1980, a Troy ounce of gold sold for $850 (an all-time high). Over the 28 years from 1980 to 2008, the CPI has grown at a compounded annual rate of 3.3%. In 2008 a Troy ounce of gold sells for $730. What was the real interest rate earned..
There are at least two different possible approaches to the problem of building a model of the costs of production of electric power. What functional form would you recommend for estimating Model I? Be sure to write out a specific equation. What func..
Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
Explain how will this affect wages and number of workers in home construction. How will this affect the cost of building a home.
Consider a firms per-period (e.g., hourly) production process. If it employs 1 unit of labor, then 4 units of output will be produced; if it employs 2 units of labor, then 10 units of output will be produced; and if it employs 3 units of labor, then ..
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