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Problem
Independent Speedy Printing (ISP) purchased a printing press for $12,000. The annual operating and maintenance costs of this equipment are $3,500, increasing by $1,000 per year as the printing press gets older. The resale value at the end of the first year is $8,000, reducing by $2,000 each year. If the cost of money is assumed to be 20%, what is the economic life of this press? Do not consider depreciation and tax effects. Assume ISP uses straight-line depreciation, six-year life, and zero resale value for depreciation purposes. Its aggregate tax rate is 40%, and it has a MARR of 10%. What is the economic life of this press? ISP is profitable and can use the tax effect of depreciation.
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
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Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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