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The purchase cost of a copy machine is $5,000. Each year it costs $1500 on maintenance. After 10 years it will be scra pped for a salvage value of $800. What is the equivalent uniform annual cost (EUAC) of this copy machine with an annual interest rate of 15%?
A country that does not tax cigarettes is considering the introduction of a $0.40 per pack tax. The economic advisors to the country estimate the supply and demand curves for cigarettes as: QD = 140,000 - 25,000P; QS = 20,000 + 75,000P, where Q = dai..
If an Italian investor sells U.S. government securities to a U.S. buyer, how will this item be entered in the balance of payments?
Your company is bidding on a system design project. It is your job to design the system architecture. How will you balance the need for scalability against the need to keep costs as low as possible to win the bid?
A perfectly competitive firm operates in the short-run with labor as its only variable factor. Its production function is: Q = -L3 + 10L2 + 88L where Q is output per week measured in tons and L is the number of workers employed. The weekly wage is $3..
What would you expect to happen to the domestic money supply as R and y both increase along a stable BB curve? Explain in intuitive terms what forces would tend to bring about such a change in the money supply.
Consider the following firm with the production function Q=F(L)=2L^1/2. L=labor. Wage w=12. Fixed costs are FC=500(sunk cost). Derive the short run cost function. Graph this function using excel.
A monopolist estimated that the own-price elasticity of demand for its product is -4.5 and its advertising elasticity of demand is 1.5. Assuming these elasticities are constant, what fraction of the firm's revenues should the firm "reinvest" in adver..
One explanation for Chinas rapid economic growth during the past several decades is its expansion of policies that encourages technology transfer. by this we mean policies such as opening up to international trade and attracting multinational corpora..
Indicate whether each of the following statements is true or false, and explain why. Producer surplus tends to fall as the supply curve becomes more elastic. Consumer surplus tends to rise as demand becomes more elastic.
Which of the following statements is sequentially correct?
Homer' s boat manufacturing has a monopoly on boat sales in the region. Homer' s marginal cost of the 8th boat produced is $1200.
We also observe that the proportion of workers receiving disability benefits is much lower in the US than in the latter two nations. Are these findings consistent with the work-leisure model.
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