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Old McDonald Farm, Inc., a large profitable crop farm, must replace its planting equipment. The farm expects all investments to return at least 8%. Which has the lower EAC? By how much?
Be sure to label your graph carefully as well as accurately. What is the slope of the budget constraint.
Suppose you see a series of loan payments described in factor notation as follows; P = $500(P/A, 2.02%, 24) Further suppose you know that the interest rate i=2.22% is the interest rate per quarter. What then, is the number of years over which this pa..
A society will be at a point outside its production possibilities curve whenever
Suppose that production for good x is characterized by the following production function, q=k0.5Lo.5, where k is the fixed input in the short run. if the per init rental rate of capital, r, is $15 and the per unit wage, w, is $125, then the average f..
Using the supply and demand graphs for both the bond market and the loanable funds market, show the effects of an increase in the expected return on stocks.
Why can it be suggested that the fact that the ratio of skilled labor/unskilled labor has risen in almost all U.S. industries in recent years (and not just in traded goods industries) lends support to the view that increased inequality in the United ..
A study in 2005 reported that the average male CEO of Fortune 500 firms is 6 feet, about 2.5 inches more than the average male. Why might this be difficult to eliminate through laws that restrict companies from hiring based on height?
What institutions explain why workers in some countries have more capital than workers in other countries?
Suppose the monthly demand for soda by a consumer is given by Q=10 - 8P . A/ If the price of soda is $1 per can, how many sodas will the consumer purchase in a typical month? B/ what is the elesticity of demand for soda?
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
What are the three basic functions of money? Describe how rapid inflation can undermine money’s ability to perform each of the three functions. What are demand shocks? Give an example of a positive and a negative demand shock. What is the difference ..
At which interest rate will an individual be indifferent between receiving $50 per year every year forever (starting one year from now), and receiving $1000 today?
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