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a manufacturer is considering purchasing equipment, which will have the following financial effects:
Year Disbursements Receipts
0 $4400 $0
1 660 880
2 660 1980
3 440 2420
4 220 1760
If money is worth 6%, should he invest in the equipment?
In the analyses below, when drawing your diagrams assume that students can choose among only two products on campus, namely tobacco and food.
The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will Anthony demand?
Suppose the equation for the LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls.
The monopolist charges a single price for output, how much will he produce, what price will he charge, and what profit will he earn?
Suppose the market demand function (expressed in dollars) for a normal product is P=80-q, and the marginal cost (in dollars) of producing it is MC=1q, where P is the price of the product and q is the quantity demanded and/or supplied.
Identify & describe two different roles that interest rates play in the economy. Does a change in an interest rate indicate that a change in some part of the economy is occurring Explain.
there are 4 general market structures detailed in this sectiona. perfect competitionb. monopolyc. monopolistic
curlys life insurance co. is trying to sell you an investment policy that will pay you and your heirs 33000 per year
If there is asymmetric information what is the optimal strategy for the workers What is the optimal strategy for the firm Is the employment contract between the firm and the workers self-enforcing If yes, why If not, which would be a self-enforcing..
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. 1. If these economists ignore the possibility of crowding out, what would they estimate the marginal p..
An arrangement in which consumers choose their health-careservices while other institutions pay a share of the cost of thoseservices is called a(n)____ payer system a) provider fees b) insurance premiums
Explain why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular
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