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The initial cost of a permanent park is $1,500,000. Annual maintenance and operation costs are $100,000 per year. Every 6 years, the park needs $400,000 to replace all facilities. At an annual interest rate of 10% per year, the capitalized cost of the park is ?
Allows the government to collect wealth for redistribution based on the amount of stored wealth that is being passed on in the form of an inheritance.
If you each charge a high price, you each earn profits of $200. If you charge different prices, the one charging the higher price loses $50 and the one charging the lower price earns $300.
Why does equilibrium real GDP occur where C + Ig = GDP in a private closed economy? What happens to real GDP when C + Ig exceed GDP? When C + Ig is less than GDP? What two expenditure components of real GDP are purposely excluded in a private closed ..
A firm making external hard drives has a cost function c(y) = 4y + 1000. Its demand function is y = 200 – 0.5p. a. Calculate the profit-maximizing price and quantity. b. The firm decides to enter the Mexican market. It determines that its demand func..
Bank of America is involved in the banking of over 80 countries and helps countries to finance the government as well as businesses. Bank of America has the largest market share in the banking industry. Is it a monopoly that controls the entire banki..
Predatory pricing is easy to prove in a court of law. An incumbent firm may experience a learning curve that allows it to produce at a lower cost than a potential entrant. A firm receives no individual benefit from strategies that raise the marginal ..
Explain how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?
Illustrate what is the cost of producing 10 units in the short run? First conclude how much labor is needed.
If an industrial process emits a pollutant, is it more efficient to monitor the amount of pollutant emitted by each firm and establish a tax per unit of pollutant, or to
An increase in the market price of men's haircuts, from $15per haircut to $25 per haircut, initially causes a local barbershop to have its employees work over time to increase the number of daily haircuts provided from 35 to 45. What is the short-run..
Traffic at a certain intersection is 2000 cars per day. A consultant has told the city that traffic is expected to grow at a continuous rate of 4% per year. How much traffic will be expected at the end of 5 years? : P=2k, r=4% continuous comp, n=5, F..
Express Illustrate what will happen also why to the firm's average fixed costs, marginal costs, average costs also profits as the firm makes its choices.
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