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You are going to buy a refrigerator. Brand A will cost $700 and cost $80 per year to perate. Brand B will cost $800 and cost $55 per year to operate. You want to earn 12% per year on your money. Neither will have any salvage value. How long will you need to keep your refrigerator to make brand B attractive? Please show a step by step solution.
The manager of Big Oil Company in Mandeville tells investors that at the end of 2006 they had gasoline in inventory worth $446. In 2007, Big Oil produced gasoline worth $353 and sold gasoline worth $217. How much did Big Oil add to Mandeville's GDP i..
q1. what are the overall keys to answer questions about how attaching more regulation would influence economic
Specialization and Exchange. Please select one item that you can see from where you are sitting right now – and list and describe as many people as you can think of that played a role in getting that item to where it is right now. (One Limit Only: yo..
Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in supply due to cattle farmers selling their land ..
In this module, it is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a multiple of plants. Suppose a beer brewing company has determined that i..
Government sponsored job training program is no different from any other form of resource transfer since resources have been taken from higher valued uses to a lower valued use.
A merchandise trade deficit arises when: The balance of payments on financial account: When capital can flow freely among countries: If the dollar appreciates against the euro: Which of the following is true at the equilibrium exchange rate? A floati..
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
q1. analyze the potential downfalls of any effort e.g. free riders and make at least one recommendation for minimizing
Show (with a graph) and explain the strike and resulting negotiations for an inclusive labor union in a monopsony situation. Also, show (with a graph) and explain how an exclusive union increases wages
The FOMC wants to expand the money supply by $120 million and decides to buy bonds on the open market. Suppose the reserve requirement is 40% and banks do not hold any excess reserves. Which of the following is an alternative monetary policy that the..
The U.S. Treasury bill is yielding 2.6% and the return on the market is 11.2%. The corporate tax rate is 30%. What is the firm's weighted average cost of capital?
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