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A bulldozer with a first cost of $70,000 may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is described by the equation S = 70,000(1 - 0.15)n, where n is the number of years after purchase. The operating cost of the dozer will be constant at $75,000 per year. At an interest rate of 12% per year, what is the economic service life of the machine? What is the associated AW value?
The total cost function of a steel company is TC(Q) = 0.0003Q3- 0.02Q2+ 0.5Q + 300 , What is the firm's marginal cost at the level of output 50? At the level of output 100?
What is the break even unit sales volume company should have projected as part of its business plan before entering this market and should reconsider each time it considers leaving (exiting) this business altogether?
Deflating a time series removes the effects of dollar inflation and permits the analyst to examine the series in constant dollars.True or false
Draw a network diagram of the optimal shipments. Include in the diagram the optimal quantities, unit transportation costs, and fixed supplies and demands.
In Example 9 in Sect. 13.6.2, it was shown that to achieve a balanced budget, cutting government expenditures by 30 % from $125 to $87.5 billion must be accompanied by raising the marginal tax rate from 10 to 14.15 %. Show how the required tax rat..
The chair-making industry currently consists of 90 producers, all of whom operate with the identical short-run total cost curve STC(Q)=500+3Q2, where Q is the annual output of a firm. Only $200 of each firm's fixed cost is sunk. The market demand cur..
the interest formula shows how interest rate and time are related. it gives you a way of finding one of these values if
Question 3: [5 points] Consider a Hotelling line of length 1 with firms currently located at 0.29 and 0.75. Prices for all firms are fixed at p. You are advising a third firm about where to locate on the line. What is the best location you can sugges..
an aluminum company can produce q units of a bauxite a mineral used to produce aluminum with marginal costs of mc 9 q
Getrag expects its sales to raise 20 percent next year from its current level of $4.7 million. Getrag has current assets of $660,000, net fixed assets of 1.5 million dollar,
Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals
What appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy? Did the United States use the same or different criteria?
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