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Let the investment described in question 6 be option A and suppose the company could instead purchase some more expensive equipment with an initial cost of $40,000 (call this option B) that would lower the annual operating costs to $5,000. Assume annual savings from the investment remains the same and the salvage value would be 10% of the initial cost at the end of a 10 year life in either case.
Based simply on an economic comparison which option should the company select? Use whichever method you prefer to make your choice.
What other criteria might play a role in this decision?
Using Oaxaca decomposition, calculate how much of wage differential is due to discrimination. What is an alternative Oaxaca decomposition that would lead to a different measure of discrimination.
What is the Law of Supply? How do we illustrate the Law of Supply? Give an example of the Law of Supply use two to four sentences to explain your example. Indicate whether the following are considered a change in supply or a change in quantity suppli..
In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.
Suppose that the carnival and the circus have both come to town, and are both o?ering free admission. You have 6 free hours to kill. Draw the BUDGET LINE that shows your options for how you can spend the day.
Construct a market basket using a graph. calculate the price index based on the basket. Decide quantity and estimate current prices for each product.
At the Bretton Woods Conference in 1944, two proposals were made to manage international payment imbalances: (1) Keynes’ International Clearing Union (or Bancor plan) and (2) the United States’ plan (International Monetary Fund). How were these plans..
International trade has pros and cons. Economists generally support free trade. International trade has played a significant part in promoting economic development and technology transfer among countries.
suppose that the economy is currently in a recession. If policy-makers take no action, explain how will the economy evolve over time. Explain in words and using an aggregate-demand/ aggregate-supply diagram.
The duration of copyright increased under U.S. law in several steps since the eighteenth century until it reached the life of the author plus 70 years. Suppose that a writer completes a novel at age 40. If the writer lives to be 75, then the copyrigh..
His plant engineers report that, at his projected volume, labor costs are $1.00 per package, material costs are $2.00 per package, and other average fixed costs are about $0.7. What price should he charge for his firm's product?
Has the U.S. economy experienced inflation or deflation during recent recessions.
Illustrate the effects of changes in various factors on a nation's aggregate demand. Include expectations about the future expectations, fiscal policy, monetary policy, and changes in the world economy. What are the determinants of aggregate demand? ..
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