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A married couple is planning to buy a new sport utility vehicle (SUV) 5 years from now. They expect the SUV to cost $32,000 at the time of purchase. (a) If they want to have half of the cost for a down payment, how much must they save each year (starting at the end of the current year) if they can earn 10% per year on their saving. Alternatively, (b) they can set aside a lump sum 2 years from now in a savings account that earns 10% annual (compound) interest in order to have their down payment. How much should this lump sum of money be? (c) If they choose to deposit 5 equal end-of-year amounts in the savings account in order to pay in full for the SUV 5 years from now, what will be the equivalent annual worth? (d) What is the equivalent present value of the SUV? Assume the same interest rate.
An ice cream shop read in the local paper in which the elasticity of market demand for ice cream
Describe the concept of economics of scale and how long run costs curves shape the economic structure of industries.
Suppose you are running a photo copy center that makes illegal copies of the textbook. An illegal copy of the book sells for $10 and you only have one copy machine.
Assume that initially equilibrium was 200 units and that this was also full employment level of income
E;lucidate whether each among the subsiquent is an example of an automatic fiscal stabilizer.
Important information about Regression anaylsis. Compute the equilibrium price and quantity.
rate of technological change also innovation has increased substantially. Discuss how these changes are likely to affect your firm's optimal bundling of tasks into jobs and subunits.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
Assess the degree of difficulty associated with measuring marginal revenue product for each of the following occupations.
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