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Heidleman Industries is considering two types of materails for roofing its warehouses. EPDM is an elastomeric polymer synthesized from ethylene, propylene, and a small amount of diene monomer, compounded with carbon black processing oils and various cross-linking and stabilizing agents. The 75 mil thickness will cost $4.10 per square foot and will last for 25 years. A thin sheet aluminum roof will cost $6.00 per square foot, but it will last for 50 years. Using an interest rate of 10% per year and a present worth comparison, determine whether the company should install the polymer of the aluminum roof?
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $10 per unit. a. Express the firm's marginal revenue as a function of its price. b. Determi..
Economists who align more with the "Classical" school would have a "leave it alone" (Laissez Faire) attitude and would oppose active policymaking. "Rational Expectations Theory" (a "new classical approach") suggests that people figure out what wil..
What is the relationship between bowed out shape of production possibilities frontier and increasing opportunity cost of the good as more of it is produced?
How does the investment banks industry fit into the perfectly competitive model - Special characteristics of purely competitive firms
A monopolist has demand and cost curves given by: Find out the quantity that maximizes profit? What is the revenue and profit at that point?
About the role of Multinational Corporations in Business, Government and Society. the role of ethics in the global arena, the influence of governmental regulation, the roles of consumer, employee and environmental protection and how good corporat..
Discuss the implication to Economic Efficiency of an economy operating at point and what would it take for the economy to operate at point Z?
Using two graphs, show consumer surplus before and after government intervention.
What is the variable cost and when output is 10,000, what are the average variable cost and the average fixed cost?
Microeconomics is considered to be the study of scarce resources. Here, customers must make allocation decisions. These 3-basic trade offs include which goods or services are to be manufactured,
The following is the production possibilities for a firm. At 0 labor units (strangely enough), there are 0 units produced. At 1 labor unit, there are 10,000 units produced, at 2 labor units, there are 25,000 units produced, at 3 there are 45,000, ..
Economists also use the principle of comparative advantage to advocate free trade among countries as a better policy. Trade is not based on absolute advantages countries have but the relative (comparative) advantage. 1. Does free trade contribu..
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