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A small manufacturer uses an industrial boiler in its production process. A new boiler can be purchased for $10000. As the boiler gets older, its maintenance expenses increase while its resale value declines. Since the boiler will be exposed to heavy use, the probability of a breakdown increases every year. Assume that when a boiler breaks down, it can be used through the end of the year, after which it must be replaced with a new one. Broken down boilers have no resale value. Use a decision tree to determine which year of operation should the boiler be replaced?
Do you agree that the private sector in Nigeria should be focusing on creating jobs for the youth?
Do you think that economic incentives and disincentives influence family size decisions? Explain your answer giving some specific examples of such incentives and disincentives?
In which of the following situations is the Coase theorem likely to apply? Explain. The neighbor who lives below you in the apartment building loves to play old John Denver records at loud volume early in the morning. In fact, his favorite song seems..
Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use three gumball presses and two workers to produce 1000 gumballs per hours. (a) Please find the cost per hour of producing 1000 gumballs.
Explain the effect of an increase in income tax rate on the equilibrium GDP in the Keynesian income-expenditure model.
What are some of the moral and conceptual problems with using the Pareto standard of efficiency for measuring social welfare gains?
If countries are first ranked by level or real GDP per capita, and then by the value of the Human Development Index, would you expect the ranking of countries to be similar or different?
Provide evidence that the economic contraction from July 1981 to November 1982 was very similar to the Great Recession.
Discuss several of the trends that are driving this rise in thefts, making certain to address availability and a comparison of resale values from second-hand de
The U.S. government has a legal monopoly on the printing of U.S. currency. For the sake of this question, suppose the government decides to relinquish its monopoly—the Department of Justice will “break up” the federal government’s monopoly on U.S. cu..
Please provide examples of externalities, including an explanation of why or how they demonstrate the concept of externalities
Discuss the issues involved in deciding upon a value of the social discount rate for evaluating the costs and benefits of current investments to mitigate and/or adapt to climate change.
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