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Three different plans were presented to the US GAO (Government Accountability Office) by a high-technology facilities manager for operating a small weapons production facilities. Plan A would involve renewable 1-year contracts with payments of $1 million at the beginning of each year. Plan B would be a 2-year contract, and it would require four payments of $600,000 each, with the first one to be made now and the other three at 6-month intervals. Plan C would be a 3-year contract, and it would entail a payment of $1.5 million 2 years from now. Assuming that GAO could renew any of the plans under the same conditions if it wants to do so, which plan is better on the basis of a present worth analysis at an interest rate of 6% per year, compounded semiannually? (Hint: Calculate LCM.)
Low switching costs and the availability of many subs+tutes for Tropicana Orange Juice indicates what in a Porters analysis? a. Power of buyers is high b. Power of suppliers is high c. Power of suppliers is low d. Power of buyers is low
What problem is the economy facing? Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1? Which tool(s) would you reco..
Explain why do cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets.
One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?
Per capita income in County A is $45,000. Per capita income in County B $38,000. Physician visits average 3.4 per year in County A and 3.2 per year in County B. What is the arc income elasticity of demand for visits?
q.the head of the central bank of a small african nation is trying to determine whether the m1 or m2 money multiplier
Suppose short-run output exceeds full potential output by 3 percent. According to Okun's law, what is the effect on unemployment? Assuming that inflationary expectations are constant, what is the effect on wages?
Which economic decision makers conclude the provider of labor. Illustrate what is their goal also illustrate what decision criteria do they utilize in trying to reach which goal.
Using demand–supply diagrams in the labour market, show what it means that there is a minimum wage but it is not “binding”. Should we have unemployment if it is not binding?
What is the profit-maximizing p in the case that Godzilla and Macrosoft merge and suppose that Godzilla chooses its price first, and that Macrosoft only picks its price after observing Godzilla's price. Is the equilibrium price of the composite go..
Name three industries which best fit each of the three non perfectly competitive models (Monoplolistc Competition, Oligopoly, and Monopoly, and give support for your choices.
Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
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