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A firm expects to install smog control equipment on the exhaust of a gasoline engine. The local smog control district has agreed to pay to the firm a lump sum of money to provide for the first cost of the equipment and maintenance during its 10-year useful life. At the end of 10 years the equipment, which initially cost $10,000, is valueless. The firm and the smog control district have agreed that the following are reasonable estimates of the end-of-the year maintenance costs:
Year 1 $75 Year 6 $200
2 100 7 225 Year 7 225
3 125 8 250 8 250
4 150 9 275 9 275
5 175 10 300 10 300
Assuming interest at 6% per year, how much should the smog control district pay to the firm now to provide for the first cost of the equipment and its maintenance for 10years?
Why do economists differ as to the appropriate economic role of the state? What is deflation? What threat does it pose? What are the distributional consequences? What are the distributional consequences of inflation? What was the so-called "Keynesian..
Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.
Show that the following relation holds true sqrt((m - 1)/m) = (QE/Q*) = sqrt((m + 1)/m). What is the underlying reasons that this relation holds? Provide an interpretation of that relation.
A regulated natural monopoly has the following data: if the firm is ordered to price its good so that there is locative efficiency then the firm will have?
What are the ethical issues at stake when companies permit employees to use personal technologies on the job? What are the implications for all stakeholders?
q.company xyz produces cellular phones brand greenberry at a yearly rate of 500000 units. its total fixed costs are 6
Determine the total amounts of M1 and M2 based on the following data from July 2010: Currency held by individuals and businesses was $921 billion. Traveler's checks were $7 billion. Checkable deposits owned by individuals and businesses were $813 bil..
Take a minute to think about the demand for college education and whether or not the costs of attending college (not just tuition, but also some of the opportunity costs associated with attendance) influences the number of students who attend college..
Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and..
Suppose that the demand in a particular industry is given by Qd = 500 − 2P. When the market price in the industry is $50 per unit, total demand in the industry is _________. Furthermore, assume that the entire market consists of four firms that share..
You begin putting $500 a month into a savings account that pays 3% compounded monthly. A) How long until you have enough for a down payment? B) What is the present value of your account?
Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the economy. Please discuss your findings and how the economy will affect them diffe..
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