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A firm purchased some equipment at a very favorable price of $30,000. The equipment purchased in an annual net savings of $1000 per year during the 8year it was. At the end of 8 years, the equipment was sold for $40,000. Assuming interest did the equipment purchase prove to be desirable?
Identify those who gave us the concepts of monopsony and human capital.
Illustrate what is the elasticity of demand if you raise the price of your airline's tickets by 6% also the number of tickets sold decreases.
Andy’s decision to increase his purchase of a particular good by 150 units from its previous level of 50 units was brought about by the fact that another good was on sale at 50% off the initial price. Explain, with correct numerical calculations, whe..
If a nation has no absolute advantage, then it? A) cannot gain from trade B)can still gain from trade C)can only gain from trade if it raises its productivity D)can only gain from trade if it reduces wages paid E)can only gain trade if it produces ou..
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks’ ATM machines. What would be the f..
From an economist's perspective, an important consideration for policies to address global warming is: Which of the following does not illustrate the asymmetric information problem: In a well-functioning cap-and-trade system for pollution rights, the..
Consider a labor market in which the intersection of the demand curve and the supply curve occurs on the “backward-bending” part of the labor supply curve (i.e. the part where the labor supply curve is downward sloping), but the demand curve is steep..
Explain how each of the following will affect money supply, money demand, the interest rate, the price level, and real GDP. Use 2 graphs for each (one showing what happens to the money market, one showing the AS/AD model) a. The economy experiences a..
Sam owns outright (no mortgage payments) two plots of land of equal size in Southern California. One plot is in Victorville (the High Desert) and the other is in the coastal community of Newport Beach. Given that Sam’s calculations were correct on t..
Three individuals have $1000 and identical preferences for gum, g, and cigarettes, s, as measured by the utility function U(g,s) = 10g0.9a0.1. The price of gum is $9 and the price of cigarettes is $12. What is the market surplus/shortage at a price o..
The market marginal benefit for milk (in gallons) is given by MB = 132 - 8/3925 Q. There are two firms in the market that produce milk. The first firm’s marginal cost curve is given by MC1 = .0003125Q, while the second firm’s marginal cost curve is M..
Consider a firms per-period (e.g., hourly) production process. If it employs 1 unit of labor, then 8 units of output will be produced; if it employs 2 units of labor, then 12 units of output will be produced; and if it employs 3 units of labor, then ..
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