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In your construction business, you are planning to purchase a truck which costs $45,000 and have a variable cost that starts at $15,000 the first year and increases by $2,000 per year. Assume that the estimated market value at the end of five years is $9,000 and the interest rate is %10. What is the equivalent annual cost of owning and operating the truck?
Canada and Mexico. Suppose that Canada and Mexico produce two goods: timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two industries. Considering these changes i..
The US and many other countries are experiencing high government deficits and debts. What, if any, impact does this have on their does this have on their respective economies? Is government debt bad? Good? It depends? And if so, why and how?
What are externalities? How might they lead to overproduction? How might they lead to underproduction?
Country A and Country B both have the production function: Does this production function have constant returns to scale? Explain. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker an..
Identify two stakeholders you may consult when reviewing and confirming your organization's vision and mission.
Illustrate what would be the cost saving of this change
Steve and Sons Solar Panels has a production function represented by Q=4KL, where the MP=4K and the MP=4L. The current wage rate(W) is $8 per hour, and the rental rate on capital is $10 per hour. In the short run, the plant's capital stock is fixed a..
Calculate the same price elasticity of demand between $4 and $5. SHOW YOUR WORK.
How many billions of metric tons were sold at this price (what was the market equilibrium quantity)? At this market price, what were revenues for US sunflower
Consider the following for an example of a some what perfectly competitive market: Can you think of any products that are not differentiated? In other words, are there any products that you buy where brand does not matter? Can you think of any indust..
Suppose equilibrium price in the market is $30, and the marginal revenue is $20. What is the price elasticity of demand?
The Circular Flow Model with Government is another important model for students to understand. a. Please explain what the model shows us. List and explain the assumptions of the model. i. There are 3 assumptions of the Circular Flow Model with Govern..
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