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A company purchased some equipment at a very favorable price of $35,000. The equipment resulted in an annual net saving of $2000 per year during the 8 years it was used. At the end of 8 years, the equipment was sold for $45,000. Assuming interest at 8%, did the equipment purchase prove to be desirable?
Under what circumstance would you be no worse off if the company paid you cash instead of providing a car.
In which of the three market arenas is each of the following goods traded?
With the passage of the Affordable Care Act the U.S. government requires that everyone have some form of health insurance. One of the provisions of the law is that firms with more than 50 full-time workers must provide health insurance to those worke..
You will explain monetary policies as they relate to the business environment. What is the effect of the extended period of low interest rates in the US economy on: (a) banks taking deposits, (b) individuals saving for retirement, (c) cities and town..
A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking nice year round. A used cleaning vehicle will cost $85,000 and have a $20,000 market (salvage) value at the end of its five-year life.
What is brand loyalty? Name three products each for which you have (a) high brand loyalty and (b) low brand loyalty and explain why for each of the six products.
Elucidate what happens to the price of oranges and the marginal product of orange pickers as a result of the freeze. Can you say what happens to the demand for orange pickers.
A monopolist operates at the minimum point of her ATC curve
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high.
Should you raise the price of your widgets? What will be the effect on total revenue? Include elasticity, consumer and producer surplus, utility maximization, consumer equilibrium.
You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is..
The U.S. government issues a coupon bond with the coupon rate 5% and the maturity 20 years. The bond with a face value of $1000 is sold at a present value of $900. Calculate the yield to maturity of the two bonds. Are the two bonds sharing the same y..
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