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A manufacturing company is planning to set aside $75,000 now and $120,000 one year from now for possible maintenance for a certain type of machine. If the maintenance won't be needed for 4 years, how much will the company have in the account, if it earns interest at a rate of 8% per year? Solve it using: Standard notation, Formula.
Which of these has the least elastic demand? If total revenue rises when price is raised, demand. The effect on the market for heating oil of a leftward shift of supply would be. A drop in the price of oil will result in
Assume that a firm pays taxes on revenue and is allowed some deductions. Derive and explain the user cost of capital if the firm's nominal interest payments are tax deductible. Derive and explain the user cost of capital if the firm's real interest p..
In the US, realized capital gains are taxed at 15% if they are held for more than a year. Suppose instead that we include realized capital gains (those held for more than a year and less than a year) in income instead so that they are added to an ind..
More and more consumers have begun watching their favorite network television programs on their computers. Suppose that initially this service is provided at no charge. Use the infinite line tool to draw the demand curve (Demand) for downloadable tel..
During the purchasing decision, evaluation stage, the consumer forms preferences among the brands in the choice set.
Until a few years ago, U.S. cars exported to Japan had the driver controls on the left side (as in the United States). The Japanese (like the British), however, drive on the left side of the road, so Japanese cars sold in Japan have the driver contro..
A firm that produces and distributes electricity has mostly fixed costs. It also tends to be the only provider of electricity in its market. This is an example of pure monopoly resulting from the firm:
Why doesn’t the Fed simply keep increasing the growth rate of the money supply at faster and faster rates to drive the unemployment rate lower and lower? Wouldn’t the gains in terms of faster output growth far exceed the losses from inflation?
Where Qx represents thousands of donuts; Px is the price per donut; Py is the average price per donut of other brands of donuts; and Ax represents thousands of dollars spent on advertising Newton’s Donuts. The current values of the independent variab..
Suppose that government decides to charge cola consumers a tax. What is incidence of tax that falls on producers.
How would each of the subsequent affect Helena's hand basket supply of worker.
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100.
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