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Govenor Swann wishes to reinforce the fort at Port Royal for $150,000. He believes this will save $70,000 per year in pirate-inflicted damage. The improved defense is expected to last three years. Given the military's discount rate of 5%, what is the net present value, internal rate of return, and annual worth for this investment?
altering of the interest rate to change aggregate demand. Fact that equal increases in government spending and taxation will be contractionary.
Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.
What should you do with the outcomes that are not economic and may not be translated using monetary unit? (The answer can be more than one choice) Quantify the expected future results. Change the viewpoint of the problem.
Which of the following statements best describes the underlying philosophy of Deming’s work in the area of quality assurance?
Suppose that in a particular country, GDP per capita was $ 10,000 in 1960 and $ 40,000 in 2008. Using the rule of 72 (not a calculator), approximate the annual growth rate of GDP per capita.
The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change that brought about this change in quantity demanded?
Consider the housing market described by these equations: Find the equilibrium price and quantity. Calculate the consumer and producer surplus.
Whether a tax is shifted forward or backward depends on the price elasticities of demand and supply. The effect of a tax is the same thing as the incidence of the tax. The principle of comparative advantage is associated with
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..
Analyze the role of credit in our economy and how it influences the business cycle. In your answer, explain how the role of credit leads to the stability of our economy.
The marginal revenue received by a firm in a perfectly competitive marketplace is illustrating what
Your product fails about 2% of the time, on average. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Would you want to price the extended warranty at 2% of the product price? Discuss both mor..
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