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You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have determined that the IRS-allowed mileage reimbursement rate for business travel is about right for fuel and maintenance at $0.485 per mile in the first year. You anticipate that it will go up at a rate of 10% each year, with the price of oil rising, influencing gasoline, oils, greases, tires, and so on. You normally drive 15,000 miles per year. What is the optimum replacement interval for the car? Your MARR is 9%.
A night-club owner has both student and adult customers. The demand for drinks by a typical student is QS = 18 − 3P. The demand for drinks by a typical adult is QA = 10 − 2P. There are equal numbers of students and adults. The marginal cost of each d..
Solve for equilibrium real output and also solve for the equilibrium interest rate.
Derive the degree of homogeneity of the production function given by (I). Show all steps in deriving your answer - prove that the fiumtion in (1) above is strictly concave on R++.
Consider the monetary intertemporal model with investment. Analyze a temporary, positive TFP (z) shock and a permanent increase in Ms, respectively. How do the implications di?er? What assumptions on the economic behavior of households and ?rms do th..
which of the following is the best explanation for the state's historic reliance on severance taxes on oil and gas production.
Think about an advertisement (in any medium) that had either a strongly positive or strongly negative effect on your attitude toward the product being advertised or the advertiser itself. Why did the ad have this effect? If you responded positively t..
Write about the problem or issue as if you are explaining it to someone who has never taken an economics class. Be sure to explain the key concepts and terminology of both microeconomics and macroeconomics.
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project, where the cost of the lawsuit might range from $10,000 to $500,000 with an associat..
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
Analyze the implications of adverse selection in insurance markets that contain information asymmetry and community ratings. Justify your response.
Explain how you would tell the employee and your remaining subordinates.
The GDP is $40 billion below its potential value. It is expected that next-period GDP will be $20 billion below potential and that two periods from now it will be back at its potential level. The multiplier for government spending is 2. What is the b..
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