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Question: Which machine should be chosen if a firm uses an interest rate of 12%? Machine A has a life of 15 years, a first cost of $45,000, annual O&M of $8000 per year, a salvage value of $6000, and an overhaul in year 9 that costs $16,000. Machine B has a life of 20 years, a first cost of $50,000, annual O&M of $8400 per year, a salvage value of $4000, and an overhaul in year 12 that costs $20,000. The machines will be used for at least 25 years. How much does the best choice save (either PW or EAC)? What assumptions have you made and why?
Which economic activities would be included in the U.S. domestic gross product (GDP)?
Assume that the Keynesian short run aggregate supply curve is applicable to a country's economy. Construct appropriate diagrams to assist in answering the following questions:
What is the own price elasticity of demand when Px = $154? Is the demand elastic or inelastic? What would happen to the firm's revenue if it decided to charge a price below $154?
Draw a new production frontier for nation 2 showing the rybcznski theorem for doubling for the amount of capital only.
Explain the reasoning behind the U-shaped, long-run, average cost curve. Explain the law of diminishing marginal returns. Describe economies and diseconomies of scale.
Given the above information, what is the value of the CPI in 2015 when the base year is 2013 and what is the value of the CPI in 2015 when the base year is 2014? Assume that the CPI is measured on a 100-point scale and is rounded to the nearest wh..
Use multiple regression to estimate the demand function for widgets. Is this a good equation overall? (Why) Which variables are significant? (Why) Are widgets normal goods or inferior goods?
All other factors held constant, what would be the effect on the demand for money (M1) of each of the following situations. Explain the rationale behind your responses.
Rusty Flapps, an airline pilot with Air Canada, suddenly finds himself laid off because of the dramatic decline in the demand for air transportation brought on by the terrorist attacks of 9/11 and the recent economic slowdown.
If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?
How much economic profit do you expect that Roberts company will make in the first year - Do you expect this economic profit level to continue in subsequent years? Why or why not?
What is the subgame perfect pricing policy for Tony?
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