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The initial cost of a pickup truck is $12872 and will have a salvage value of $3523 after five years. Maintenance is estimated to be a uniform gradient amount of $191 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.3 per mile for 381 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?
In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
Assume 200 videotapes are rented when the price is $4. If the price drops by $.80, the number of videotapes rented increases to 220. Which of the following statements about the non-arc price elasticity of demand is true.
What happens to money supply and interest rates in general if Federal Reserve is a net seller of government bonds.
q1. a budget deficit that is only temporary cannot be the source of inflation. is this statement true false or
What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail
q.differentiate between management and leadership.describe the role and responsibilities of leaders in creating and
Shellys preferences for consumption and leisure can be expressed as U(C, L) = (C − 200)(L − 80) (1) This utility function implies that Shellys marginal utility of leisure is C − 200 and her marginal utility of consumption is L − 80. Write down the bu..
Suppose that re are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. What is opportunity cost of producing a car in Canada.
Some politicians and financial/economists argue that the U.S. must embark upon an era of “financial repression” in which wealth must be kept from fleeing the country and must be taxed heavily within the country. What would be the rationale for financ..
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
Give two examples, the first of a case where firms have a particular advantage over markets in coordinating economic activity, and the second where firms have a distinct disadvantage
Question 1: People clearly discount the future, relative to the present. But they may discount certain things more than others. Arrange the following in decreasing order of the likely discount rate. After you have made your list, write a few senten..
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