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A painting operation is performed by a production worker at a labor cost of $1.40 per unit. A robot spraypainting machine, costing $15,000, would reduce the labor cost to $0.20 per unit. If the device would be valueless at the end of 3 years, what is the minimum number of units that would have to be painted each year to justify the purchase of the robot machine?
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
Suppose that the Law of Demand is violated – that is, suppose that the Demand curve for a particular good is upward sloping. Suppose that the Law of Supply still holds so that the Supply curve is also upward sloping. This results in two cases, depend..
Free trade will affect a country's employment in different industries. Banks can obtain funds to make loans by borrowing reserves from other banks through the federal funds market. When one individual writes a check to another individual the money su..
Consider a coupon bond that has a $1000 par value and a coupon rate of 10%. The bond is currently selling for $1044.89 and has two years to maturity. What is the bond’s yield to maturity? If the expected price of this bond next year is $1000. Calcula..
Appraise this statement: In equilibrium, a monopsonistic hospital will hire fewer nurses at lower wages than would a hospital in a more competitive market, to the detriment of social welfare.
“Who will get the output” is that the people who are willing and able to pay the existing market price get the output. If you cannot pay for the product or service, you do not get to have the product or service. This is true for all products and serv..
If you invest $300 in a stock, borrowing $240 of the $300 at 10 percent interest, and the stock price rises by 15 percent, what is the return on your investment?
Two firms, Antaeus and Benina dominate the market for toaster ovens. They compete Cournot. How do the prices, profits, and quantities of Antaeus and Benina compare to the outcomes of a competitive market? How does Cournot competition generate these r..
Discuss the effects of HIV/AIDS on the economies of african countries. Making sure to discuss the sources of economic growth and the use of scarce resources.
How would you characterize the relationship between increases in plant size and labor productivity ? Also, comparing these two quarters, given the production levels, which plant size should the firm select based on labor productivity (measured by ave..
Before the digital revolution, health information technology supplied very limited support for evidence-based practice.
Why do firms maximize profit by setting MR = MC? Why is the same MR = MC condition used when af irm experiences a loss? What is an explanation for the profit maximizing position of a firm. Does it reflect a short or long run equilibrium?
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