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A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life. Yearly maintenance cost is estimated to be 15000 per year. The machine required a major overhaul costing 50000 at the end of the tenth year of service? What is the future value of all the cost associated with owning and operating this machine if the interest rate is 8% per year?
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? W..
In most developing countries, the empirical studies show that there is extreme inequality in the distribution of education. A small section of the population is very highly educated and the majority of the population has practically no education at a..
Find the average time per unit required to produce the first 30 units, if the slope parameter of the learning rate is 92% and the first unit takes 460 hours.
Explain how a permanent rise in government military expenditures affects investment in medium run and output growth in long run.
Soft selling occurs when a buyer is skeptical of the usefullness of a product and the seller offers to set a price that depends on realized value. For example, suppose you're trying to sell a company a new accounting system that will reduce costs by ..
Tata Motors is a major player in automobile manufacturing in India. It has three different manufacturing units that specialize in manufacturing different transportation-related products, such as trucks, engines and axles, commercial vehicles, utility..
How would you define the geographic and product markets of large healthcare organizations such as Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and John Hopkins? What are the barriers for new competitors to enter those markets?
Present Karl Marx’s economic and social critique of capitalism. Provide empirical examples to illuminate the depth and pervasive of those critiques in contemporary American culture.
Changes in price dictate movements along demand curves. When a decrease in demand or the quality demanded occurs it’s a safe bet that its correlated to a price increase, which in turn leads to a resultant surplus of that particular commodity in the m..
Why does a newspaper dispenser open to a stack of newspapers and essentially “trusts” a consumer to take just one copy whereas a soft drink vending machine does not “trust” consumers and dispenses one can for each purchase? Describe how marginal util..
Suppose the demand for apartment rentals in New York is Q = 1000 - P and the supply of apartment rentals is Q = 4P. What is the equilibrium price and quantity of apartment rentals in New York?
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