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Bonka Toys is considering a robot that will cost $20,000 to buy. After 7 years its salvage value will be $2000. An overhaul costing $5000 will be needed in Year 4. O&M costs will be $2500 per year. Draw the cash flow diagram.
A company decides to invest in a technology that costs $50,000. The technology, which has a life of 10 years, is expected to save the company $10,000 the first year. The benefits (savings) from the technology decreases by a fixed amount, G, each year..
In a world of two goods (say, x and y) an increase in the price of x which is accompanied by money compensation for the income effect alone will lead to:
Suppose in Belgium the opportunity cost of producing a trombone is 8 clarinets. In Denmark the opportunity cost of producing a trombone is 6 clarinets. What is the opportunity cost of producing a clarinet for Denmark?
Explain the basic distinction between microeconomic analysis and macroeconomic analysis.
In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Become an advocate for either the consumer or the industry. Prepare an argument ex..
Why do you suppose that many economists have argued that publishers ultimately will switch to establishing a single "world price" for each of their textbooks?
The United States can make certain toys with greater productive efficiency than can the China. Yet we import those toys from China.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 50 - 0.5P, and the marginal cost of production is $60. Determine the optimal number of units to put in a..
Describe the ultimate goal of the product campaign for the new shampoo. Discuss your methods for achieving this goal. Identify the components of marketing, pricing, and distribution for the campaign. Include in your response a discussion and analysis..
Suppose it takes a total of 100 hours to produce a car (mathematically speaking, this means one hour of work “produces 0.01 cars”). If the average wage in car making is $50 per hour, and each car needs $1,000 worth of inputs other than labor, C1: Wha..
Which of the following might most closely represent a monopolist? In a monopolistic labor market, the marginal-factor-cost curve is
Mary Smith took out a loan of $75,000. The loan runs for five years at a minimum interest rate of 33% with payments due each month. How much is each monthly payment?
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