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A low-carbon-steel machine part operating in a corrosive atmosphere, lasts 6 years, and costs $350 to be installed and $50 to be removed at end of life. If the part is treated with corrosion resistance, it will cost $500 to be installed and nothing to be removed at end of life. How long must the treated part last to be the preferred alternative, assuming 10% interest?
Suppose Ecuador and Hongkong negotiate a voluntary export agreement in which Hongkong imposes on its exporters a quota that limits shipments to Ecuador to 40 computers Assume Taiwan does not tske advantage of this situation by exporting computers to ..
What necessarily happens to average quality in a hospital market when the generosity of insurance coverage increases? How does this relate, if at all, to the data appearing in Chapter 1 on increases in hospital spending through time in the hospital s..
Taco Bell firm raises the price of its tacos. The price elasticity of demand for Taco Bell tacos equals 5.0. What happens to the Taco Bell's total revenue? Which of the following statements is correct for the price elasticity of demand along a linear..
Write down the different costs associated with putting on an NFL game. Classify these costs as either fixed costs or variable costs. Assume that a single playing season constitutes the short run.
q.a mechanical engineer who recently graduated with a masters degree is contemplating starting his own commercial
Explain the meaning of the "excess burden," also called the "deadweight loss." Do general taxes on sales, income, and produced wealth cause an excess burden? Explain. What is the economic significance and consequence of the excess burden?
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course, the owners have asked for your opinio..
The European Central Bank has recently announced a program similar to the quantitative easing (QE) carried out in the USA (see the link below for details). What is the macroeconomic rationale for this? Do you think this program will work in the Euroz..
Use the accompanying graph to illustrate the short-run equilibrium of a monopolistically competitive firm. (b) At the equilibrium, what is (i) Price? (ii) Output? (iii) Total profit? (c) Identify the long-run equilibrium of the same firm. (d) In long..
Would company benefit by advertising in this perfectly competitive market. What would happen to price of toothpaste, would it rise or fall. What would happen to profits company makers.
Break-even point and degree of leverage (LO2 & 5) Mo & Chris’s Delicious Burgers, Inc., sells food to Military Cafeteria for $15 a box. The fixed costs of this operation are $80,000 while the variable cost per box is $10. what is the break-even point..
Illustrate what is the annual cost for chocolate syrup buffer stocks. Illustrate what impact does the variability of demand seem to have on buffer stock.
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