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An engineer uses an economic analysis to determine which of the two machines to purchase. All the machines that are being considered are capable of performing the same task. Assume that the minimum attractive rate of return is 12% compounded monthly. What is the annual worth of the two machines? Which is the best investment Machine X Machine Y Initial cost 8,000 11,000 Estimated life 3 years 3 years Salvage value 1,000 1,500 Monthly Maint. Cost 1,500 1,475 Monthly incomes 3,550 3,475 a. EAW x = 1,784.76, EAW y = 1,646.83, X is the best investment b . EAW x = 669.51, EAW y = 807.53, Y is the best investment c. EAW x = 1,784.76, EAW y = 1,646.83, Y is the best investment d. EAW x = 807.53, EAW y = 669.51, X is the best investment
As the skill level (and therefore earnings rate) of, say, an architect, computer specialist, or chemist increases, what happens to his or her opportunity cost of doing other things? How is the time spent on leisure likely to change?
(a) If two firms face the same wage and rental price of capital but spend different amounts on labor and capital, how do their isocost lines differ What happens to their isocost lines if the wage rate increases
.Most people are consumers, making demand decisions in product markets, and also workers, making supply decisions in resource markets. How do workers choose how much of their labor service they are willing to sell Is the quantity supplied likely t..
The inverse demand function for natural gas in Altoona is P(q) = 11 - Q. The Altoona market has a single natural monopoly producer with a total cost function of C(Q) = 5Q - 0.005Q2.The public utilities commission is thi..
An increase in the excise tax on alcohol? a)will have no effect on alcohol consumption b)will generate minimal tax revenues for the federal government c)couped with a uniform drinking age nationwide would save lives
Which of the Supply Factors do YOU believe will be most important for the future growth of the U.S. economy? WHY? Briefly explain what we mean by labor productivity. What is its most important determinant?
No one will buy the good if the price is above $80 and no one will sell the good if the price is below $20. The equilibrium price and quantity if this market is perfectly competitive would be $40 at a quantity of 20.
The City of Rochester is thinking of expanding its airport. The expansion will increase travelers' consumer surplus by $100 and airlines' producer surplus by $200, while costing taxpayers only $50. However, the expanded airport will be much noisier.
Analyze five reasons why demand for this product could shift and analyze five reasons why supply could shift.
Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn't collude. Even in firms in a monopolistically competitive market collude successfully.
Does this production function exhibit constant, increasing, or decreasing returns to scale and find the marginal product of each factor and the marginal rate of technical substitution.
identify at least five (5) fixed costs and five (5) variable costs OF the NFL (National Football League). If the business or economy slows down, discuss how the industry can control its costs based on the ten (10) costs you identified.
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