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Rick buys a 1966 Mustang for $3,000, planning to restore and sell the car. He goes on to spend $9,000 restoring the car. At this point he can sell the car for $10,000. As an alternative, he can spend an additional $3,000 replacing the engine. With a new engine the car would sell for $13,000. Rick should
complete the repairs and sell the car for $13,000. sell the car now for $10,000. never try such an expensive project again. be indifferent between (i) selling the car now and (ii) replacing the engine and then selling it.
question1. a model of the determinants of health combines three economic variables and two economic
The demand for lumber, like that for carpenters, is a derived demand-derived from lumber demand in its many uses, particularly housing. When the demand for new housing increases, so does the demand for lumber. For example, as the U.S. economy reco..
An increase in government spending or An equal decrease in taxes if consumer confidence is lower than the previous month.
The opportunity cost of the debt is: The interest payments on the debt. Less of an issue if the economy is below full employment since crowding out is less likely to occur. Not an issue if the debt is financed internally. The decrease in public-secto..
Assume the economy starts at equilibrium and the mpc=.8. What would be the effect of the $500 increase in taxes (once all the rounds of the mulyiplier process are complete) in relation to equilibrium output?
you have just inherited 100000 from your rich uncle sam. being the conservative sort you rush to your local bank and
If there is a natural monopoly one firm owns all the natural resources in the production of a good, such as owning the diamond mines needed to produce diamonds.
a tell me why you selected the appropriate exponential smoothing method by commenting on your y data
Consider the pricing problem of Alcoa's cookware division. Suppose that the world last for only two periods, period 1 and period 2. A saucepan last two periods, so that a saucepan that is bought in period 1 can also be used in period 2. Consumers val..
1. consider an economy described by the production functiony fkl k3l7a. what is the per worker production function?b.
Consider the preferred prices of the authors and publishers of the electronic book, whose marginal cost of production is close to zero? Would the two disagree regarding the price to be charged for book?
even before the metals and manufacturing companies described earlier u.s. railroads in the nineteenth century were
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