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a. Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 8 percent per year over the next three years. Current sales are $100,000. Forecast sales for each of the next three years.
b. If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), what was the actual annual compound growth rate?
A small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8,800 at EOY one).
In a global market, where U.S. firms compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context?
Draw a graph and explain your diagram. Does the change in her consumption reflect a substitution or an income effect?
What sum should you deposit into an account to yield 20 year end payments, starting with $10,000 at the end of the first year and increasing by 4% each year at an interest rate of 8% compounded quarterly
Can all Pareto optima be decentralized without changing endowments? Can they be decentralized by redistributing endowments?
Assume that government ownership doesn't affect the cost of supplying gas. If the government's objective is to maximize the net benefit (social welfare) to the community as a whole, what price should be set
5.We are usually worried about ability bias when estimating returns to education. Are the following candidates valid instruments? Why or why not?(a) Distance of parents' home to college.
Given the ideal gas law, pV = nRT, find q for an isothermal reversible expansion. What is the work required to compress 1 mol of an ideal gas from 1 to 100 atm at room temperature? Express the work in J, erg, cal, and L atm units. Note that the la..
Calculate the Average Propensity to Consume for two households
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
Draw a game tree like the one shown in Figure 27.10 on page 588 and predict the outcome of the game. How will the turtle firm respond to the threat of entry? Will the frog firm enter the market?
Doug wants to go into the donut business. For $500 per month he can rent a bakery complete with all the equipment he needs to make a dozen different kinds of donuts . He must pay unionized donut bakers a monthly salary of $400 each.
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