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A state government is considering construction of a flood control dike having a life span of 12 years. History indicates that a flood occurs every 4 years, on average, and causes $500,000 in damages on each occasion. If the state uses a MARR of 12% per year and expects every public works project to have a benefit-cost ratio of at least 1.0, what is the maximum investment (to the nearest whole dollar) that will be allowed for the dike?
What is the expected cost of producing the 1000th unit if the cost of producing the first was $850 and the expected learning rate is 90%?
In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself topics? At the profit-maximizing quantity, what is the average total cost of producing e-books?
What are the potential long term problems for unions in agreeing to labor-management cooperation programs?
Suppose you read in an industry publication that the Rothschild index for the petroleum industry is 0.88. Based on past experience, you know that the price elasticity of demand for the petroleum products sold by your firm is ?1.5.
If the price of A rises to 4 while other prices and Daniel's budget remain unchanged, how much or each does he purchase in equilibrium?
Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
Suppose the cost of producing a 30 second commercial for television is $100,000. If airtime on the evening news costs $200,000 and is viewed by 5 million people, what is the advertising cost per potential customer?
How an airline executive might use tourism economics relating to passengers load factors, ticket prices discounts, frequent flyers programs, joint fares, flight frequencies.
A firm that has the long-run cost curves shown in the graph above would be able to do or have the following, except:
Increasing the earnings of minimum wage employees is desirable, and raising the minimum wage is the best way to accomplish this. Everyone should enjoy open access to health care. Health care subsidies will increase the consumption of health care.
Unemployment numbers drop as more jobless Americans Find out positions in local businesses. Which determinant of aggregate demand causes the change.
Why do prices in monopolistic competitive markets remain above the prices that would exist in perfectly competitive markets even in the long run after entry has eliminated above normal profits?
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