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An oil refinery must now begin sending its waste liquids through a costly treatment process before discharging them. The engineering department estimates costs at $300,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $30,000 each year. As an alternate, a specialized firm, Hydro-Clean, has offered a contract to process the waste liquids for 10 years for $150,000 per year. Either way, there should be no need for waste treatment after 10 years. Use an 8% interest rate and annual cash flow analysis to determine whether the Hydro-Clean offer should be accepted.
Two weeks later, Nina arrives and demands to purchase 15 of Seth's cars. Is he obligated to sell?
A monopolist with a straight-line demand curve finds that it can sell one unit at $9 each or nine units at $1 each. Its marginal cost is constant at $2 per unit.
Graphically depict using the Average Total Cost curve (among others) why efforts to break up a monopoly into many small firms will not be successful. Explain your intuition as well.
Derive the short run total cost, short run average cost also short run marginal cost as functions of output q.
Consider the following statement. "Winter ice storms that sometimes hit Chicago are good for the economy. They create many jobs to remove downed limbs and replace trees and bushes." Do you agree that ice storms are a net benefit to the economy? To an..
q.consolidated salt company sells table salt to both retail grocery chains and commercial users e.g. bakeries snack
Name at least one reason why an insurance company might set a deductible. Explain when can forcing everybody to buy full insurance at market rates help everybody?
q1. during a coffee-room debate among several young mbas who had in recent times graduated among all one of the young
A bulk material hauler purchased a used dump truck for $50,000. The operating cost was $5,000 per month, with average revenues of $7500 per month. After two years, the truck was sold for $11,000. The rate of return was closest to:
Consider the U.S economy compared to a European economy such as Germany. The data tell us that in the U.S, real GDP and real consumption (per person) are higher than in Germany. Moreover, Germans enjoy signi?cantly more vacation time each year. Assum..
The city of Greenville is concerned about rising rent for low-income households. Several policies being considered. Suppose there are a large number of construction companies, In the absence of any government intervention, what will be the long run p..
The Pacific Northwest possesses an abundance of dams producing cheap hydroelectric power. Consequently, electricity prices are lower than the rest of the United States, and Northwest consumers use more electricity on average than consumers in other r..
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