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A new machine tool is being purchased for $16,000 and is expected to have a zero salvage value at the end of its 5-year useful life. Compute the double declining balance (DDB) depreciation schedule for this capital asset. Assume any remaining depreciation is claimed in the last year.
Prices for a medical procedure average $1,000 and range from $800 to $1,200. How much could a consumer paying full price save by getting the best price? Suppose that insurance is responsible for 75 percent of the consumer’s spending and that out-of-p..
Islandia is a completely isolated island that has a fixed stock of 100,000 tons of coal. Islandia will survive for two periods. Consumers in Islandia having a declining marginal benefit of coal consumption in each period. Assume the real interest rat..
What are some factors (patterns of behavior) that project a company’s culture? List several examples from the organizations you work in.
Suppose my grand grandmother in 1909 put $100 in the bank account for me. The bank has been paying the compounded (annual compounding) interest rate of 5% per year. If I go and pick up this money now (that is in 2009) how much money will I get?
In deciding where to operate along its production possibilities frontier, a society is answering the question of
q1. if consumption increases by 12 billion when real disposable income increases by 15 billion illustrate what is the
A monopolist faces a demand given by p = 40 – 4y . Its cost function is c ( ) = 2 + 4 y . a) What is the optimal level of output for a monopolist? b) What is a monopolist price? c) What is the total profit (or loss)?
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the preformance of the plasma screen makers?
The makers of Tylenol pain reliever do a lot of advertising and have loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol
Why are commitment problems particularly widespread in international relations?
When a worker announces that she plans to quit, say next month, the threat of being fired is generally not credible. The worker may find it in her interest to shirk. What can a manager do to overcome this problem?
The real interest rate is 4 percent, and the nominal interest rate is 6 percent. What is the anticipated rate of inflation?
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