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A donor wishes to endow a scholarship at a certain university. The endowment may be made by a lump-sum deposit to a special foundation set up by the university for such purposes. The foundation director believes that its funds will earn at least 8% interest per year, tax free, for indefinite future.
The scholarship is to provide $5,000 the first year increasing by $500 each year thereafter to a maximum of $10,000 per year. On the assumption that the scholarship will start at the end of the first year and continue forever, what endowment must the donor make?
What percent of the tax is borne by buyers. If income rises to $40,000, how much will tax revenue rise.
4,000,000 stems were sold that week. During the week of June 5-11, the rose market cleared at a price of $0.20 per stem and 3,800,000 roses were sold. From this information what would you conclude about the price elasticity of supply in the rose ..
Illustrate what is elasticity of demand at profit maximizing level of output. Without use of any calculations, determine wherefirm=s total revenue would increase, decrease, or stay same if CRAPCO attempted to increase its price by .2%. Explain how..
How much output is lost as a result of deaths from secondhand smoke, according to the news.
Builders of a hybrid car declared it would build a car that would get 180 miles per gallon of unleaded gas. They figured it would cost $40,000 each car to build.
How do you recover an investment when the residual value is significantly less than the loan value.
Draw the isoquants for coffee production. Write down a mathematical expression for the production function for coffee.
If the note matures six years from today, how much money will you recieve from all the investments? Express this also as an annual rate of return.
Illustrate what is the estimated KWH also illustrate what is the interval which would contain 95 percent of such estimates.
An experienced salesman offers his service (help you perfectly price discriminate) for $800. Based on c) and d), do you accept the salesmans offer? Show work, and explain briefly.
Suppose the inverse demand for an industry was given by P = 60 - 0.03Q. What price results from perfect competition in this market? How many units are sold in this market?
Derive and plot Hugo"s Engel curve for donuts. Explain how much does his weekly budget have to rise for Hugo to buy one more donut per week.
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