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The initial cost of a pickup truck is $11289 and will have a salvage value of $3730 after five years. Maintenance is estimated to be a uniform gradient amount of $133 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.23 per mile for 167 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 12 countries to their current markets. If the agreement is reached, operations are exp..
Most economists want a 0% target for unemployment. The current natural rate of unemployment is thought to be somewhere around 5%. If the economy is above full employment it causes higher than normal unemployment. In a closed economy, inflation repres..
Explain why are changes in inventories included as part of investment spending
The inverse market demand for fax paper is given by P=400-2Q. There are two firms who produce fax paper. Each firm has a unit cost of production equal to 40, and they compete in the market in quantities. Show how to derive the Cournot-Nash equilibriu..
The process of being served at a bank consists of two parts—the time waiting in line and the time it takes to be served by the teller. What is the standard deviation of the total time (X+Y) it takes to be served at the bank?
Electricity is often generated using coal fired plants. Unfortunately, coal burning produces SO2, which causes acid rain. Consider two countries that border each other to answer the following question. Country A’s SO2 emissions are known to negativel..
Compare and contrast economic development strategies based on import substitutions versus export promotion.
Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.
Which of the following is a valid reason as to why prices will not always adjust to changes in spending?
A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the ..
while a decrease in price of pizzas rotates it rightward. How can we possibly speak systematically about people's preferences.
Why is economics a science of choices? Explain the kinds of choices confronting workers and employers in labor markets. Distinguish between microeconomics and macroeconomics.
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