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A new machine can be purchased today for $300,000. The annual revenue from the machine is calculated to be $67,000, and the equipment will last 10 years. Expect the maintenance and operating costs to be $3000 a year and to increase $600 per year. The salvage value of the machine will be $20,000. What is the rate of return for this machine?
EXplain what is the short-run condition for the monopolist and what output changes would you recommend.
Assume a world consists of only two countries: Latvia and Bulgaria, which can produce only two goods: lemons and beef. Latvia can produce 1000 tons of lemons or 500 tons of beef or any linear combination of lemons and beef that satisfies lemons+2×bee..
When the incidence analysis of a tax increase incorporates the assumption of an offsetting decrease in another tax, we call the analysis
President says that wages probably should be cut so that workers could not afford to miss so much work. Evaluate two views utilizing income and substitution effects in your analysis.
According to behavioral economists, self-control problems:
Which of the following is always true of monopolists? a. they charge the highest possible price b. they always earn high profits c. they do not have to worry about demand d. they charge a price higher than marginal cost
What would happen to the money supply if the Fed increases the required reserve ratio to 20%? Money supply can increase by $1,000.
The law of supply illustrates that
Suppose the government institutes a tax of $11.60 per pair, to be paid by the seller.
Calculate the output level that will maximize profit. Calculate this maximum profit.
If each of the firms sets its own output rate to maximize its profits, assuming that the other firm holds its rate of output constant.
If the risk free yield curve is inverted (long term risk free interest rates are lower than short term risk free interest rates), what is this likely to imply about investor’s expectations of future interest rates?
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