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In developing a subdivision, the developer is required to build the roads to the city building code specifications and to deposit an amount which will allow the city to repave the roads every four years for an indefinite period of time. The costs to construct the roads are $25,000 and $4,000 each time repaving is required. The city estimates they will be able to invest the deposited sum at 6% indefinitely. How much money should the city require the developer to deposit?
Sally earns $3,000 per month on two goods, A and B, whose prices are $30 and $60 respectively. She is currently spending half her income on each good and maximizing her utility. How much of each good is she consuming
European governments tend to make greater use of price controls than does the U.S. government. For example, the French government sets minimum starting yearly wages for new hires who have completed le bac, certification roughly equivalent to a hig..
Suppose that there is an increase in the demand for personal computer systems. Explain the likely effects on marginal revenue product, marginal factor cost, and the number of workers hired by the firm.
Suppose Zia spends her time picking berries and apples. Her production set is described by the equation , where is the number of berries and y the number of apples.
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with: ( a ) A $50 billion increase in go..
A "mathematically fair bet" is one in which the amount won will on average equal the amount bet, for example, when a gambler bets, say, "$100 for a 10 percent chance to win $1000 ($100 = .10 x $1000). Assuming diminishing marginal utility of dolla..
The diesel-powered generator with a cost of $60,000 is expected to have a useful operating life of 50,000 hours. The expected salvage value of the generator is $8,000. In its first year, the generator was operated for 5,000 hours.
Find the breakeven point for the PRODUCTION RUN Find the breakeven point for the WEEK What is the total profit or loss for the company if it runs at 50% capacity for the 10 weeks, with a total capacity of 1000 widgets/week
Reviewing your file, your home insurance company found that you paid $1000/year beginning October 1992 and your premium has been increasing by $50-a year since you started. The company had to pay you $15,000 compensation for weather damages
The information in the table given below are the results of a random sample of current home sales in your neighborhood that your boss has asked you to use to estimate relationship in selling price of house and number of square feet in it.
Duff Inc. paid a 2.06 dollar dividend today. If the dividend is expected to grow at a constant 4 percent rate and the required rate of return is 7 percent, what would you expect Duff's stock price to be 3 years from now
What is Q if the price level is 120? Suppose that Q in your answer is the full-employment level of output. By how much will Q increase in the short-run if the price level unexpectedly rises from 120 to 132.
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