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A new power plant will cost Newburg $2.1M to build and $230K per year to operate for its 25-year life, when its salvage value is zero. The higher efficiency of the new plant will lower utility bills by $21 per year for each of the 20,000 residents of Newburg. The plant's air pollution will cost residents $3 each per year. If i = 5%, should the new power plant be built?
The firm's average variable costs and average fixed costs per month are R200-00 and R500-00, respectively.
What is the ratio of Indian GDP to U.S. GDP if we don't take into account the differences in relative prices and simply use the exchange rate to make the conversion? What is the ratio of real GDP in India to real GDP in the US in common prices?
Suppose the economy is in long-run equilibrium when a decrease in the interest rates causes an increase in new home sales. What happens to the price level and the level of output in the long run? Draw an aggregate demand/supply diagram that illustrat..
How does the difference between private and social values explain market failure even with perfect competition and market equilibrium, in the case of public goods and externalities? Allow public goods to be just like private goods in terms of exclusi..
What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital a..
a. Provide the equation for the monopolist's marginal revenue function (Note: Q = Q1 + Q2) b. Determine the profit maximizing level of price and output for each
A region is considering two sites on which to locate a new wastewater treatment plant. Site A has been owned by the region for five years and the region intially paid $200,000 for the land. The current market value of the site is $400,000. Site B is ..
Suppose Nation A can produce 2 million pounds of sugar per week OR 1 million pounds of rice in a week and Nation B can produce 10 million pounds of sugar per week OR 3 million pounds of rice in a week. If this is a two-good, two nation model,
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4. What is the absolute size of its public debt in ye..
The steady state of the Solow growth model with exogenous technological progress and Cobb-Douoglas technology predicts that the real rental rate (ie: the price) of capital will not exhibit long run growth if the capital input market clearing conditio..
Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers.
How can a student apply the ideas of Grit and growth mindset to improve or strengthen their college score?
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