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How much would the owner of a building be justified in paying for a sprinkler system that will save $750 a year in insurance premiums if the system has to be replaced every 20years and has a salvage value equal to 10% of its initial cost? Assume money is worth7%
Suppose the demand curve for corn is QD =20−1/5P. Suppose that one firm owns the production of corn all over the world and has marginal cost of 10. Does the monopoly sell less output than would be sold in a competitive market with 72 equal-sized firm..
The EPA debating preserving a section of wilderness as a protected area. The land is owned by a rancher who has offered to lease the land to the government for 20 years in return for an immediate lump sum payment of 1.8 million. Should the agency pro..
Quantity effect of a specific tax. A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produced will be from such a tax. The proposed specific tax i..
Consider a neighbourhood with 1000 residents. Each individual must choose (let’s assume simultaneously) whether to be a criminal or not. If an individual chooses to attempt a criminal act, their payoff is 200 if they succeed, but -300 if they are cau..
how does development of personal computer hardware and software reversed some of the trends brought on by the industrial revolution.
Write a thorough analysis of unemployment, defining the various types of unemployment, full employment, and the natural rate of unemployment. Describe the impact of unemployment on the economy and your solutions to lower unemployment. Remember to cit..
Describe "how" producer surplus is measured?
At Illustrate what level of output does AVC reach its minimum value. Illustrate what is minimum value of AVC at its minimum.
Problem 1: Assume that the long run total cost function for each firm in a perfectly competitive industry is LRTC = q3 - 4q2 + 8q and the market demand function is Q = 2000 - 100p. Calculate:
Arian is about to borrow $3,903.71 from his uncle. He has an option to repay the loan at the end of year 6 with 9.73% simple interest per year or with 6.77% interest per year, compounded annually. What is the difference of the total interest paid ove..
You invest in a fast food restaurant on Rt. 13 in Dover, Delaware (Hey, it seemed like a good idea at the time). You were required to invest $300,000. One year passes. You decide to sell your business. During the year you were paid $25,000 as your % ..
Under illustrate what circumstances should the debtor nation status of the United States (US) be a concern.
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