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Murphy Morsels just bought a new chocolate-chip making machine for $25,000. Murphy's old machine was taken as a trade and was valued at $5000. Also, Murphy received a 5% discount on the new machine's price after the trade-in allowance. Murphy plans on making monthly payments for 3 years with 12% nominal interest. What is the monthly payment?
From the profit maximization perspective, under which condition does it make sense to expand the level of output in the short-run?
The total rate of return is equal to the: A. sum of the coupon rate and the current yield. B. yield to maturity. C. sum of the current yield and the actual rate of capital gain or loss. D. sum of the current yield and the expected rate of inflation.
appliance store are unable to successfully compete also are driven out of business. why does Wal-Mart have a cost advantage over its competitor.
Micro surfacing is part of a pavement restoration and maintenance program that seals the surface of a street that has minor cracking to prevent water from penetrating into the base material. The annual cost of the equipment (truck, tank, valves, etc...
You are the project executive of a monopolistically competitive firm. The present demand curve is P=100-4Q . Your total cost equation is C(Q)=50+8.5Q2 , and MC = 17Q a. What level of output should you set to maximize profits? b. What price would you ..
Provide an intuitive explanation of the Principal-Agent problem and discuss any mechanisms used to mitigate the problem. You should use the business owner-manager problem as an illustration.
Suppose a society decided to reduce consumption and increase investment. How exactly would this change affect long term economic growth?
An insurance company is reviewing its current policy rates. When originally setting the rates they believed that the average claim amount was $1, 800. They are concerned that the true mean is actually higher than this, because they could potentially ..
Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4L^1/2 + K. Assume that, at the beginning when w0 = 1 and r = 0.5, the firm chose to produce q0 = 20 units of output. Then, the wage increased t..
Below are equations representing hypothetical supply and demand curves for apples Supply: P = 0.5 + 0.25 Q Demand P = 14.5 – 0.75 Q. Calculate the quantities produced and consumed of apples in market equilibrium, as well as the price of apples in mar..
Which one of the following variables is most likely to increase as production effort is increased? Which one of the following variables is most likely to decline as production effort increases? The efficient price of a license fee is determined by th..
Hasn't the Fed already tried quantitative easing? When? What were the results? Discuss the method of quantitative easing used by the Federal Reserve.
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