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Milliken uses a digitally controlled “dyer” for placing intricate and integrated patterns on manufactured carpet squares for home and commercial use. It is purchased for $400,000. It is expected to last 8 years and have a salvage value of $30,000. Increased net income due to this dyer is $95,000 per year. Milliken's tax rate is 40% and the after-tax MARR is 12%. Develop tables using a spreadsheet to determine the ATCF for each year, and the after-tax PW, AW, IRR and ERR after 8 years.
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
Assume that demand for good X is a function of its price (PX), the price of good Y (PY), and Income (M) as follows: QX = {(M + PY)/(2PX)} - 1 Given the following values for these variables: PX = 2; PY = 5; M = 51 (a) Calculate the (own) price elastic..
What would be good textbooks at the graduate level that deal with Labor Economics and Labor-Macro (As in, Equilibrium Unemployment Theory, Shimer Puzzle etc)?
A firm in perfect competition has a Total Cost function of TC = 5Q^2 - 10Q + 20. If the current Price (P) = $5: What is the current quantity and profit? Will firms enter or leave the industry?
Assume your local congressman calls you for some economic advice. He wants to sponsor legislation to increase public spending on such common medical interventions as because he’s been told early detection saves money:
The base pay for army recruits is $16,000 per year. The army has been recruiting 100,000 new soldiers each year. But this is found to be inadequate given the need for troops in abroad. what would have to be the increase in base pay to attract the des..
The domestic supply-and-demand diagram below represents a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity?
Amend the diagram and use similar algebra to figure out Illustrate what happens again.
Hot chocolate is made from chocolate syrup and milk. Using a separate supply and demand graph for each question, please show the effects of the following events on the market for hot chocolate (please specify the change in demand, supply and the equi..
The case study of wages and productivity in the textbook demonstrates that:
If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then
A firm that has the long-run cost curves shown in the graph above would be able to do or have the following, except:
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