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Suppose an environmental regulation costs $400,000 today (one time payment) and would save $1 million worth of health costs 20 years from now. a) Would you recommend the program at a discount rate of 0%? 2%? 10%? b) Which discount rate would industry argue for and why? What discount rate would environmental groups argue for and why?
The following is a quote from a news article: "If a company makes product donations to the school- computers for instance - then the image of a. company goes up as graduate students use the company's products." Does such action consistent with a comp..
What role does depreciation play in the Solow growth model? How would a decrease in the rate of depreciation (?) change the steady state level of capital and output? Illustrate using a diagram of the Solow Equilibrium. How would the model’s conclusio..
Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.
If the world market for crude oil experiences an increase in supply and a decrease in demand, which of the following results is expected to occur?
Machine A has a service life of 4 years and Machine B has a service life of 3 years. If the required service period is 6 years and either machine can be repurchased in the future for the same price, what is your analysis period?. If the required serv..
Assume the market for a commodity is described by the demand and supply functions. Determine the equilibrium price and quantity in this market. Draw a graph to illustrate your answer and compute the consumer surplus and the producer surplus.
Increasing the earnings of minimum wage employees is desirable, and raising the minimum wage is the best way to accomplish this. Everyone should enjoy open access to health care. Health care subsidies will increase the consumption of health care.
A company owns a 8-year old gear hobber that has a book value of $62,000. The present market value of the hobber is $86,000. A new gear hobber can be purchased for $465,000. Using an outsider’s point of view, what is the net first cost of purchasing ..
Suppose government spending increases. Would the effect on aggregate demand be larger if the Fed took no action in response or if the Fed were committed to maintaining a fixed interest rate? Explain why and give an example
What lessons should companies learn from Siemens’ reliance on bribery?
If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
Compare the additional revenue Microsoft makes as it moves from 20 million to 40 million copies of Vista with the additional revenue it makes as it moves
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