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We want to donate a marble birdbath to the city park as a memorial to cats. We also want to set up a perpetual care fund to cover future expenses “forever”. The initial cost of the bath is $5000. Routine annual operating costs are $200 per year, but every fifth year the cost will be $500 to cover major cleaning and maintenance as well as operation.
a) What is the capitalized cost of this project if the interest rate is 8%.
b) How much is the present worth of this project if it is to be demolished after 75 years? The final $500 payment in the 75th year will cover the year’s operating cost and the site reclamation.
Draw a long-run average total cost curve. What other names does it have? Why? There are three separate regions of it. List and explain each of them. List the reasons for the left side of this curve.
An electronics manufacturing company is planning to introduce a new product in the market. The best competitor sells a similar product at $420/unit. It has been found that 85% learning curve applies ot the labor required. The time to complete the fir..
If two countries reach equilibrium in their domestic markets at the same price, what can be said about their export supply and import demand curves and about the international trade equilibrium?
Suppose that the government raises the minimum wage to $10.10. Thinking of the four Marshall's Rules of Derived Demand as they apply to a particular industry, analyze the conditions under which job loss among teenage workers in that industry would be..
Suppose that there is an increase in the number of ATM machines in service. In the monetary intertemporal model, what are the current effects on aggregate output, employment, the nominal interest rate, and the price level? Please draw graphs and expl..
Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7 ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Find and interpret the outpu..
To examine some of the causes of differences in income, and to describe and analyze some of the government policies that attempt to reduce poverty. To show how the Social Security program is designed, how it developed from an insurance program to a t..
Consider the current economic conditions, including inflation and economic growth. Do you think the Fed should increase interest rates, reduce interest rates, or leave interest rates at their present levels? Offer some logic to support your answer
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
Outward Shift in the demand for capital occurs in an economic boom when increased construction of plants, buildings and other capital-intensive business activities requires huge outlays of investment. In this scenario, interest rates tend to rise alo..
Assume that there are 10 million workers in Canada also that each of these workers can manufacture
The following questions about discrimination. Does a gap between the average earnings of men and women, or between whites and blacks, prove that employers are discriminating in the labor market? Will a free market tend to encourage or discourage disc..
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