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Natasha Gurdin is debating which of two models of a car to buy ( A or B ), being indifferent with regard to their technical Performance. She has been told that the average monthly cost of owning Model A, based on LCC analysis, is $500a) Using the following Data for Model B, Calculate its LCC and determine which model is best choice for Natasha
purchase Price $23000Life Expectancy 4 yearsRelease VAlue $13000Maintenance $1100 per yearOperational Cost $90 per monthcar Insurance $1400 per yearMEan Time between Failures 14 monthsRepair Cost per failure $650
b) Develop a general Model that can be used to calculate LCC for a Car.
An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1,500 will have been accumulated. With interest at 3.97% per year, compounded monthly, how much should be deposited now?
Interpret the coefficient on log(dist). Is the sign of this estimate what you expect it to be? Do you think simple regression provides an unbiased estimator of the ceteris paribus elasticity of price with respect to dist? (Think about the city's d..
Suppose the consumer has $100 to spend on consumptionnow (c1) or consumption next year (c2). Any money not spent now can be deposited in a bank account, accumulating interest at an annual rate of 10%, and then withdrawn for spending next year. The..
How much of each good will he demand in this case? (The price of x1 is 3$ but his income has decreased)D) Calculate utilities obtained by bundles without tax and with income tax. Draw Jack's best bundles in a graph. (Budget curves, best bundles an..
Determine the expected signs of the various coefficients and explain your reasoning.
A firm has a production function Q=F(K,L) with the constant return to scale, where k is units of capital and L is unites of labour.Imput prices are r=$2 per unit of K and w=$1 per unit of L.When it produces 5 units of output,it uses 2 units of cap..
Briefly describe your answer and clearly, showing any necessary computations. Westminster Corporation has had the following experience over the last five quarters:
An economy has full-employment output of Y%u0305 = 1850. Desired consumption and desired investment are: \(C^{d}= 500 + .5(Y-T)-100r\) \(I^{d}= 400 - 100r\) Government purchases and taxes are G = T = 200. Money demand is: \(M^{d}=P(.5Y-200i)\) The n..
Each member of the family has the opportunity to migrate to the nearest city where there are two different types of jobs. Informal jobs are available to everybody and pay $200. Formal sector jobs are more difficult to get and p..
Imagine you are a consultant hired to give advice to a fast food restaurant which is faced with employees asking for a 25% increase in pay. In order to give good advice, you need more information. Create three to four (3-4) questions that you woul..
Find the Herfindahl index for an industry composed of (a)three firms-one with 70 percent of the market, and the other two with 20 and 10 percent of the market, respectively; (b) one firm with a 50 percent share of the market and 10 other equalsize..
Director of marketing at Vanguard Company believes that sales of the corporation's Bright Side laundry detergent (S) are related to Vanguard's own advertising expenditure,
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