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Mighty-lite inc., a manufacturer of plastic tables for institutional use is considering a capital spending program involving annual expenditures of 100,000 for each of the next five years. The firm estimates that its annual profit of 100,000 would increase by 50 percent when the capital program was completed. Assuming the firm has a 20-year life and the appropriate interest rate is 12 percent, should the capital spending program be implemented?
explain the future consequences of this action on the economy and the inflation rate. Please indicate the documentation on your research.
What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for m..
Consider a market with demand function D(p) = 1000 ? 10p and aggregate supply function S(p) = ? 200 + 20p if p ? 10 [and S(p) = 0 otherwise]. Compute the competitive equilibrium price and quantity, as well as the equilibrium value of consumer surplus..
Some economists suggest that the increase in e-commerce within the business-to-business (B2B) market will lead to greater competition and more goods and services becoming commodities, meaning they will compete solely on price. How do you think thi..
Assume you are looking at data for an economy that uses only two inputs, physical capital and labour. Table shows output for different combinations of labour and capital.
An analysis of US incarceration statistics compared against other countries, particularly the percentage of the population undergoing incarceration or some other form of correctional supervision.
The following events have their initial impact on which of the following: aggregate demand, short-run aggregate supply, long-run aggregate supply, or both short-run and long-run aggregate supply? Do the curves shift to the right or left?
Why is it poor judgment for the government to regulate a natural monopoly to operate at Price equal to Marginal Cost?
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
q. a monopolistic firm control in 2 separate markets. no deal is achievable between market a as well as market b. the
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. After the tax, 9 billion cases of beer are sold every year; consumers pay $10 per case (..
q1. describe what we mean by greening and thinking green. list several ways that people and businesses in the green
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