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IPS Corp. will upgrade its package-labeling machinery. It costs $150,000 to buy the machinery and have it installed. Operation and maintenance costs, which are $1500 per year for the first 3 years, increase by 500 per year for the machine's 10-year life. The machinery has a salvage value of 5% of its initial cost. Interest is 10%. What is the future worth of cost of the machinery?
Last year, a manufacturer introduced a new product that was a huge success. So the company made the decision to invest an additional $2.8 million for a plastic injection molding machine (which could be sold for $2.0 million) and $150,000 in plastic i..
Suppose that two countries are exactly alike in every respect except that population grows at a faster rate in country A than in country B. Which country will have the higher level of output per worker in the steady state? Illustrate graphically. Whi..
Under what supply and demand conditions would an excise tax create a large incidence of the tax on suppliers and a small incidence of the tax on consumers? Explain how this works.
What were the main characteristics of economic growth in Latin America from the end of World War II until the debt crisis of the 1980s? What is import substitution industrialization? Explain its goals and methods. What are the main criticisms of impo..
The economy has no government expenditure and does not have any foreign trade at present but it does have investment expenditure, which is constant at €150. Determine the equilibrium level graphically
Does Major League Baseball impose more, less, or the same amount of monopsony power on rookie players (those in their first few years in the majors) as on veteran players (say. those with 10+ years in the majors)? In explaining your answer, explain t..
The gap between a country's potential output and its consumption is most directly related to its:
What would be the socially optimal number of firms if F = 0? What does this suggest about the likelihood of F = 0? What is the role of F in determining the optimum number of firms? The delivery cost?
You are employed as an economic consultant to the regional planning office of a large metropolitan area, and your task is to estimate the demand for hospital services in the area. Use this information to project the impact of the following changes on..
the market for a new refrigerator for your company's lounge also You've narrowed down the search to two models.
How could South Koreas long run rate growth of real GDP per capita shrink to or below zero if it's long term rate of total real GDP growth were to drop to nearly zero? (Hint: what is the difference between the rate of the economic growth rate and the..
Livestock farmers frequently give antibiotics to their herds. The antibiotics create drug-resistant bacteria, making them less effective. This harms future users of antibiotics who will be using less-effective drugs. Using supply and demand curves, i..
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