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Question: The initial cost of purchase and installment of an automated shoe-making machine is $100,000. The indirect cost of operation of the factory allocated to this machine is $2,000 per year. The machine operates 4,000 hours each year and produces one shoe every 0.5 hour. The maintenance cost per year is $1,000. The shoes are sold to distributors at $10 each with 10% net profit. If the machine lasts five years and has a removal cost of $1,000 with no salvage value, what is the lifetime worth of this machine? Use a 6% annual interest rate.
The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by: Qd = 998 - 5Pw + 4 Y - 6Pg
Does the quantity of trash increase or decrease the willingness to pay for an additional trip?
Draw a new graph of the market with the excise tax. On that graph, label each of the following and calculate the corresponding values
Write out and explain the formula for the standard error of an estimator in a regression with two independent variables where both variables are correlated.
Calculate the utility of each of the individuals and the social welfare, then compare them with the situation without subsidies in Is subsidization Pareto optim
On the grid below, create a graph depicting the U.S. economy using the table above, and plot the AD and the AS
Suppose both of these events took place at the same time. Combine your analyses of the impacts of the iPod and the tariff reduction.
The firm has 15 machines in place and the wage rate rises from $10 per hour to $20 per hour. What is the short-run elasticity of this firm's labor demand?
What is Tom's 'real' hourly wage rate? How much will it be if he had 128 hours of leisure (= worked 40 hours)d. Tom chooses to work 40 hours a week. On the above graph, draw Tom's indifference curves between leisure and money so that this is his opt..
What is the difference between average total cost and average variable cost
Explain why government regulation is needed, citing the major reasons for government involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.
Bank Profits: Mbank has deposit liabilities of $50 million. It only keeps the minimum cash reserves required by law of 15%. Its annual costs (wages, rent, utilities, etc.) are $1.5 million. What is Mbank’s profit under the following circumstances?
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