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Using the current specifications, resurfacing a road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years. A proposed new specification is expected to be more resistant to wear. The resurfacing cost will be $2.1M with $90K in annual maintenance and resurfacing every 15 years.
a. Develop a choice table for interest rates from 0% to 25%.
b. If the highway department's interest rate is 6%, which specification is preferred
On Saturday, Chuck turns on the news and hears a report projecting that the price of gasoline is going to increase.
Use the IS-LM/ AD-AS model to show the short-run and long-run impacts of a decrease in money supply (M) on the real interest rate (r), real GDP (Y), the unemployment rate, investment spending (I), consumption spending (C), the nominal money supply (M..
Explain what does efficiency prevail in the Gilroy labor market. If not, what is the size of the deadweight loss. you must use a diagram and show the appropriate values on it.
During the Great Depression, business people in the United States were very pessimistic about the future of economic growth and reluctant to increase investment spending even when interest rates fell. How did this limit the potential for monetary pol..
Explain what will happen to the rental price of an apartment after the imposition of rent controls. Do you think this policy will benefit students?
Is Humble's statement economically correct? Explain your answer in detail.
You are in a meeting about the price strategy to adopt for a product your firm is about to introduce into a new market. Jack says, “We should use price skimming.” Jane says, “We should use penetration pricing.” What assumption is Jane making about th..
What percentage of drivers have a reaction time more than 1.88 seconds? What percentage of drivers have a reaction time less than 1.46 seconds?
If the price of a home in 2003 price $430,000, what is the price of a home in 2015?
Discuss whether or not oligopolies are always bad for society, using examples from the industries you described.
The private market estimates the demand (MPB) and supply (MPC) for a barrel of oil asp =40-.125Qand P= 20+ .075Q respectively, where Q is the number of barrels and b is the price. What would be the change in consumer and producer surplus – use a new ..
Using the information in the chapter, suppose Home doubles in size, while Foreign remains the same. Show that an equal proportional increase in capital.
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