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Five years ago, Thomas Martin installed production machinery that had a first cost of $25,000. At that time initial yearly costs were estimated at $1250 increasing by $500 each year. The market value of this machinery each year would be 90% of the previous year's value. There is a new machine available now that has a first cost of $27,900 and no yearly costs over its 5-year minimum cost life. If Thomas Martin uses an 8% before-tax MARR, when, if at all, should he replace the existing machinery with the new unit?
How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.
Multi-Part Pricing: In the town of Oz, there are two types of tennis players: wizards and imps. Wizards and imps do not socialize, so it would be impossible to start a tennis club that both types would join. Which clientele would you like to attract ..
If typographical errors occur andomly, about how many pagesin book have three typographical errors. What is the median number of typographical errors per page.
Assume that labor demand is inelastic enough such that there are two equilibria. Explain how a complete and perfectly enforced ban on child labor might improve conditions for families according to this model.
Chipotle Mexican Grill, the American Mexican food chain restaurant, opened its first restaurant in the United States in 1993. In 2010, Chipotle opened its first restaurant in the United Kingdom in London on Charing Cross. Why has this successful U.S...
Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq, now assume that the first firm moves before the second firm. Explain why..
Illustrate what role did the policies of various governments play in the influencing the international expansion strategies of both McDonald's and Wal-Mart.
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. In offering such training programs, is a company violating the optimality rule?
What are the types of diversity are present in the workforce? What are the impacts of globalization, multiculturalism, and a diverse workforce?
Before entry, an incumbent earns a monopoly profit of Pm = 10 million. If entry occurs, the incumbent and an entrant each earn the duopoly profits Pd = 3 million. Suppose the incumbent can induce the government to require all firms to install polluti..
The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted.
For every 100 cars using the toll roads in 2012, 120 cars will use the toll roads in 2016. (Part A) Using the midpoint formula, calculate the price elasticity of demand for Scenario 1 and Scenario 2.
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