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You would like to save money to buy a new car that costs $10,000, but currently only have $8,000 and you know you won’t have any further excess savings to contribute more to it. You have available to you a fairly good savings account which pays continuously compounded 5% interest rate. Recall that:
X(t + n) = Xt e^(rn)
Using natural logarithms solve for n to determine how long it will take for the balance of your savings to reach $10,000.
The publisher sold the textbooks to university bookstores nationwide for 3 million euros. The university bookstores received 4 million euros from students in exchange for the books.
You are advising a software firm on developing appropriate disclosure policies. You spend some time analyzing the past data that the firm has made available to you and come up with the following numbers for a typical software product.
q. assume the industry demand for a product is p 1000 - 20q. assume that the marginal cost of product is 10 per unit.a
Suppose a monopolist has cost curve C(q) = 10 + 3q + 0.1q 2 and faces demand q = 12 ? p. Find the monopolist price and quantity. Return to the situation in (a) with only one market. What would be the monopolist profit?
what was the present worth of savings associated with the cheaper chip over a 2-year period at an interest rate of 24% per year, compounded monthly?
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Should the company produce co..
Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model: The destruction of 30% of the capital stock because of a natural disaster. A permanent incr..
Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. Private pay patients have a price elasticity of demand of -3. What do you charge t..
We know that GDP has four components: consumption (C), investment (I), government purchases (G) and net exports (NX). If we let Y stand for GDP
John Paisley is planning to buy a house for $100,000 by borrowing money at the rate of 9%.
The current account balance may fall after a real depreciation because
If taxes are cut, then consumption, A laissez-faire attitude toward most markets is most closely associated with, In the classical model, the supply of loanable funds is,
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