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It is estimated that the annual sales of an energy saving device will be 20,000 the first year and increase by 10,000 per year until 50,000 units are sold during the fourth year. Proposal A is to purchase manufacturing equipment costing $120,000 with an estimated salvage value of $15,000 at the end of 4 years. Proposal B is to purchase equipment costing $280,000 with an estimated salvage value of $32,000 at the end of 4 years. The variable manufacturing cost per unit under proposal A is estimated to be $8,00, but is estimated to be only $2.60 under proposal B. If the interest rate is 9%, which proposal should be accepted for a 4-year production horizon?
How much is she actually paying the credit card company, including interest, when her credit card is paid off?
Illustrate what should be the construction level if fixed costs rose to $48,000 per month?
changes would most likely bring economy to a full employment level of national output. What is income multiplier.
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?
Explain how each change would affect bank reserves, the money supply, interest rates and aggregate demand and how this would help improve the economy.
If these are the only two firms supplying gadgets, elucidate the elasticity of supply in the market for gadgets.
Draw the Hick's income and substitution effects for c1,c2 in c1,c2 space if the interest rate decreases to .05.
q.the equation of capital accumulation is k k i - deltak where k is the capital stock at the beginning of the year i
If the potential recipient decides to work, she will receive a wage of $8 per hour. Show the budget line for the potential recipient using the above information.
q1. assume the following data for a country total population population under 16years age of institutionalized 120 not
we dot know whether the total quantity of Internet ads will increase or decrease. Is the students analysis correct? Illustrate your answer with a demand and supply graph.
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