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Question: Your brother has decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of his present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto dealership at 2.9% APR and payments over 48 months.
Compounding of interest is monthly. Alternatively, he can get a $2,000 discount on the purchase price if he finances the loan balance at an APR of 8.9% over 48 months. Should your brother accept the 2.9% financing plan or accept the dealer's offer of a $2,000 rebate with 8.9% financing?
Suppose you have estimated the supply curve for the local labor market as: Qs=W-5, where W is the hourly wage and Qs is the quantity of workers willing to work at each wage.
Historical data suggests that in the athletic shoe industry, the price elasticity for shoes is approximately -0.67. Explain what price elasticity is, and how to interpret the stated elasticity for athletic shoes of -0.67.
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development What condition would encourage research and development in competitive..
Operating Cash Flows. Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $120,000 per year. Direct production costs are $40,000 and the fixed costs of maintaining the lawn mower factory are $15,000 a year.
Assume that you became president of small theater company. Your playhouse has the 120 seats and small stage. The actors have national reputations, and demand for tickets is enormous relative to number of seats available
assume that country a has a population of 500000 and only produces 1 good cars. country a produces 100000 cars per
Derive the growth rates for the decentralized economy and for the social planner. Comment on how the scale effect discussed in Section 4.3 does not appear with this new specifcacation.
As Malcolm Gladwell points out in his article "High Prices," increases in drug spending are more the result of increases in drug utilization then in increases in drug prices. Why is this relevant to the debate over whether something should be done..
write two paragraphs answering the question below.many people feel the fed which is largely independent of congress and
what are regional trading blocs? what are the three largest regional trading blocs? what countries are members of each
What is the expected present discounted value of each of these plans if the interest rate is 1%? 10% and Which plan would you choose in each case?
explain the income effect and how this might influence ticket sales for nfl?do you think wrigleys will raise or lower
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