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Question: A used car can be kept for two more years and then sold for an estimated value of $3000, or it can be sold now for $7500. The average annual maintenance cost over the past 7 years has been $500 per year. However, if the car is kept for two more years, this cost is expected to be $1800 the first year and $2000 the second year. As an alternative, a new car can be purchased for $22,000 and be used for 4 years, after which it will be sold for $8,000. The new car will be under warranty the first 4 years, and no extra maintenance cost will be incurred during those years. If the MARR is 15% per year, what is the best option?
Explain What goes on behind the scenes with Pension Funds? How are they funded? Who manages Pension Funds?
Diamond makes an argument that all stratified societies employ one (or a combination) of four means to enable and justify the distribution of the social surplus. From the readings, discuss feudal stratification and how it was enabled and justified..
Using the annuity formula without Excel, verify that the NPV of the power plant is $11,756.21 - with a discount rate of 5% verify that the LCOE is $85.66 per MWh.
Suppose that a city operates two neighborhood schools, one in the rich neighborhood and one in the poor neighborhood. The schools are equal in size.
Manning only consumes goods X and Y. His marginal utility from consuming good X is 4, and his marginal utility from consuming good Y is 5. If the price of X is $6, the price of Y is $8, and Manning's income is $48, how much of good X will he purchase..
How do you know that the firm represented in the graph above is a purely competitive firm and to maximize profits, this firm will produce at what output level and explain why this MR=MC position is the profit-maximizing position for any firm.
Would a policy maker choose a steady state with more captial than in the Golden Rule steady state?With less capital than in the Golden Rule steady state?
Question on platform market
Pete's a kid and his weekly allowance is $10. He spends his entire allowance between gummi bears and chocolate. A price of a pound of gummi bears.
Everyday we choose one financial decision over another. Should we buy a cup of coffee or should we save that money? What is the personal and financial cost.
Describe the welfare costs of a monopoly and discuss the regulator organizations that monitor anti-trust in America. Name these organizations and their functions.
In relation to your response, Would you say that interest rates would increase as we move towards surplus?.. why have they decreased in the short term? Also Government debt levels eventually decrease.. would they increase in the short term?
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