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Machine X has an initial cost of dollar 10,000, annual maintenance of dollar 500 per year, and no salvage value at the end of its 4-year useful life. Machine Y costs dollar 20,000. The last year there is no maintenance cost. The second year, maintenance is dollar 100, and it increases dollar 100 per year in subsequent years. The machine has an anticipated dollar 5000 salvage value at the end of its 12-year useful life. If interest is 8%, which machine should be selected? (use PW method)
Prices the selling monopoly charges for TV sets in periods 1 and 2.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
Suppose that in voting fraud around the country the government is forced to spend billions of dollars in legal fees. Analyze the effects of such a massive increase in government spending in both the classical and fixed price Keynesian models when the..
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2 . The turnover cost per labor is (0.36)/(w/p). Find real wage, employment, outp..
Globalization has depressed wages in western industrialized countries, particularly those for
An inland river system is in need of rehabilitation to reduce the salinity level in water and remove blue green algae. The rehabilitation scheme involves a program of surface and ground water seepage interception and treatment to remove salt and nutr..
Short-run aggregate supply curves reflect an inverse relationship between the price level and the level of real output. The long-run aggregate supply curve assumes that nominal wages are fixed. In the long run, an increase in the price level will res..
From the Blades' Assessment of an Acquisition in Thailand case study, develop a list of factors that Blades should consider in making its decision.
What is the marginal revenue of a firm that sells a product at the price of $15 and the price elasticity of demand for the product is -2? What is the price elasticity of demand of a firm that sells a product for $20 and marginal revenue is $12? Use t..
The Law of Demand states that the demand for a product is inversely related to the cost of such product.
Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the ..
For every of the subsequent goods, indicate whether you expect demand to be inelastic or elastic also explain your reasoning
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