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Assume the value of a piece of machinery at time t, Vt , is expressed as Vt = (1 - λ)Vt -1 - M
where λ is the depreciation rate and M is the maintenance costs. Write the general solution of the difference equation. Assume the initial value of the machinery is $500,000, the depreciation rate is 10 % annually, and the maintenance cost is $2,000,
(a) What is the value of the equipment after 5 years?
(b) What is its value after 10 years?
(c) Approximately after how many years the value drops to 0?
Suppose that one must divide $1,000 among 100 students. Which divisions are efficient?
what is the most important factor leading to rising health care costs in the united states since 1980?athe increased
In the perfectly competitive market, a firm's marginal revenue is equal - is the same as the whole market demand curve.
During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the "price gouging" and "windfall" profits of the major oil companies. In the 1970s Congress imposed an "excess profits tax" on these co..
What is gross domestic product (GDP) and what is the use of it and can a country achieve a 0% unemployment rate, explain
Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the proble..
question 1.place your answers in the table provided at the end of the question1. use the following table to produce a
1. john earned 100000 last year and paid 10000 in income taxes. mark earned 50000 last year and paid 5000 in income
The aggregate supply curve shows the relationship between the aggregate price level and: Profit per unit equals:
Could they have done anything differently? How did their work fit into the existing framework of understanding in their field, and how did it advance further understanding of the field?
pollution is considered by most a negative externality. some economists would like to see the costs of these burdens
What is the perceived benefit of a product per unit consumed minus the product's monetary price - which of the following ways can entry erode incumbents' profits?
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