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A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8760 hours per year. The motor's efficiency is 90%. Because the motor is fairly large, a demand charge of $90 per kilowatt per year will be incurred in addition to an energy change of $0.08 per kilowatt-hour. If the installed cost of the motor is $3,500, what is the present worth of the motor over a 10 year period when the MARR is 15% per year?
A small country imports a product with a world price of $9. The domestic industry is composed of numerous small firms who together have a supply function Q = 2P/3. The domestic demand function is Q = 40 - 2P. There is a tariff of $3 per unit.
Total Rev0 8 16 24 32 40 48 56 1.) Calculate marginal revenue & marginal cost for each quantity 2.) Can you tell whether this firm is in a competitive industry and if the industry is in a long-run equilibrium
You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($125 million last year) and a low marginal cost of producing the product ($0.25 per pill)
United Kingdom Supermarkets In October 2000 the competition Commission reported on the supplyof groceries from supermarkets in the United Kingdom. It containedthe following information.
Value Lodges owns an economy motel chain and is considering building a new 200-unit model. The cost to build is estimated at $8,000,000; estimates for motel furnishings will cost an additional $700,000 and will require replacement every 5 years. A..
Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window. If that institution holds $300 million in transactions deposits and is subject ..
Increasing customer satisfaction typically results in increased purchase behavior. For many products, there is more than one measure of customer satisfaction. In many of these instances, purchase behavior can increase dramatically with an increase..
Now what will your price be? How much deadweight loss will your firm create?(d) After the election, you decide your firm is not making enough money. So you hire the lobbying firm C&E. C&E are able to convince regulators that you should set ..
Pure Plastics Inc. manufacture molded plastic pieces. A sample of their raw material inventory is shown in the table below. How would the plant classify these items according to an ABC classification system.
What is the profit-maximizing number of sheep to own for the 10 farmers Q7. What is your optimal choice if the other 9 farmers choose to own 5 sheep Q8. What is your optimal choice if the other 9 farmers choose to own 6 sheep Q9. What is your opt..
Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P Qd = 50000 - 10P
Your company has a customer who is shutting down a production line, and it is your responsi-bility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is ..
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