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It costs $2600 to insulate a factory. Next year, the fuel savings will be $220. Every year after this, the expense of fuel is expected to increase by the rate g. If the discount rate is 12 percent, what rate of growth in fuel costs justifies going ahead with the insulation plan? [Suggestion: Make sure that the rate of growth and discount rate are aligned in terms of periodss.]
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
Utilizing the midpoint formula, elucidate the price elasticity of demand for Coke at these prices.
Explain why should a government be concerned with the pricing of products that a company transfers.
you will be challenged to show one or more of the criteria which you believe should be improved at your place of employment.
Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.
After a decade long advertising war, NIK and REB are only two surviving company in the sport shoe market. The yearly demand in this market is given through P=100-0.5q.
Do you really believe that there are certain common characteristics or traits of American managers that have led to moral or ethical decline in United State business over recent years and thus business scandals?
Providing the current situation with General Motors, our team is recommending that they (GM) reduce their current operations in order to maximize profits.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
What is the marginal propensity to consume. What is the slope of the consumption function (you should give a numerical answer, not a formula)?
Explain why do we have such extreme diversity in pay in the US-port stars, actors, others making very high salaries while others make much less.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
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