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A city government in Arizona is considering a new waste disposal system. It has two options.
Option A needs an outlay of $500,000 and requires O&M costs of $50,000 annually
Option B needs an outlay of $450,000 with O&M cists of $95,000 annually.
Both projects have a 15 year life with no salvage value. At the end of the 15 years the city will re-evaluate the success of their assessed $100,000 per year to cover the new system. The standard interest rate for fund for the city is 6%. Your team has been requested to analyze the systems and decide which system to use. The city is used to seeing cost/benefit ratio analyses so you decide to use BC(i). Which system do you recommend? Show all calculations
Suppose that Portugal and Austria consider trading stained glass and fish with each other. Portugal can gain from specialization and trade as long as it receives more than of fish for each pane of stained glass it exports to Austria. Similarly, Aus..
Suppose that firms are NOT owned by consumers.than what is the value of that maximizes total consumer well-being?
Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.
How much does consumption change this year in absolute dollars ($ ΔC) as a result of a $5,000 annual tax cut to your income, if the tax cut.
Describe how changes in the macro environment affect individual firms and industries through the micro economic factors of demand, production, cost and profitability.
A machine has a current salvage value of $10,000, which will drop by $2,000 per year. The maintain costs will be $1,250 per year. What is the marginal cost to extend the service for 1 year, at 8%?
In order to create more revenues for government, taxes should be implemented on either wealthy individuals or on the luxury items they buy (i.e. jewelry, yachts, stocks and bonds, expensive cars) because they can afford them the most.
A monopolist faces the demand curve Q = 60-P/2. The cost function is C=Q2. Find the output that maximises this monopolist’s profits. What are the prices at profits and that output? Find the elasticity of demand at the profit maximising output.
q.denise is thinking about setting up a butterfly garden in her backyard. she estimates that it will cost her 2000 to
When the exchange rate falls by more in the short run than it does in the long run when the money supply increases, it is called.
What is marginal rate of substitution between flour and rice. What is amount of rice and amount of flour he should be consumed to maximize his utility.
Assume that velocity of money is 5, nominal GDP is $1,350,000 and cost level is 3. Estimate all possible unknowns in XYZ's economy, if its federal reserve buys $9,000.00 in government bonds.
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