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Kermit is considering purchasing a new computer system. The purchase price is $100,000. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $6,000 at that time. Over the 5-year period, Kermit expects to pay a technician $20,000 per year to maintain the system but will save $60,000 per year through increased efficiencies. Kermit uses a MARR of 12 percent to evaluate investments. Based on net present worth analysis, should Kermit purchase the new computer system?
Draw the supply of agricultural land. If a tax is imposed on all agricultural products, who would bear the burden of the tax, the owners of agricultural land or the producers renting that land? (producers of agricultural products are in this case ..
Given the above prices, will the firm adopt a new method which involves 10 units of land, 3 of labor, 2 of capital, and 2 of entrepreneurial ability?
Explain why is it wiser for the government to put a sales tax on a good that is demand inelastic than on one that is demand elastic.
You are planning a short-run production function for your firm, and you have collected the following data on labour usage and output: Calculate estimates of total. Average, and marginal products when the firm employs 23 workers
Illustrate what are the most important concepts you can learn in Economic Theory classes. How can you apply them to your life. What difference can these concepts make in your everyday life.
Explain how does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns.
Show the weekly relationship among output also number of workers for a factory with a fixed size of plant.
Illustrate what might a high dividend payout ratio suggest to an analyst about a company's growth prospects.
What happens to the demand for pizza if the price of that product decreases? What happens to the supply of tomatoes if the wages of tomato pickers increase?
Illustrate what would happen to the demand for iPhones if consumer income rises by 10%. Be specific. Are iPhones a normal or an inferior good.
What is the marginal opportunity cost of services in each country? Who has the comparative advantage in factory-stuff?
What is national saving? What is private saving? What is public saving? How are these three variables related?
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