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A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?
Explain how many units of housing would the government have to increase the provider of housing in order to get the market equilibrium rental cost.
Mrs. Smith is earning a loss and should shut down in the short run. Mrs. Smith is earning a loss but should continue to operate in the short run. Mrs. Smith is earning a profit since the price is above the average variable cost.
Assume that the reserve requirement is 20 percent. Also assume that banks do not hold excess reserves and there is no cash held by the public. The Federal Reserve decides that it wants to expand the money supply by $ 40 million dollars. If the Fed is..
Explain is any outcome generated by a Nash equilibrium not generated by any subgame perfect equilibrium.
Consider the market for peanut butter. If there is an increase in the price of bread ( a complement for peanut butter) along with a drought in peanut growing areas, the
What will be the complete and final impact on the GDP if the Federal government increases spending and simultaneously increases taxes to pay for the additional spending?
Why does an individual's demand curve normally slope down. Why does a market demand curve normally slope down. Why does a firm's supply curve normally slope up. Why does a market supply curve normally slope up.
Suppose that $2700 is set aside each year and invested in a savings account that pays 10% intrest per year, compounded continuously. Determine the accumulated savings in this account at the end of year 24
Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 15,000 cases of beer were sold every week at a price of $7 per case. After the tax, 10,000 cases of beer are sold every week; consumers pay $9 per case, and prod..
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 ..
Phil realized a total return of 13.2 percent which is less than his expected return of 14.4 percent. What is the amount of his unexpected return? A portfolio is comprised of two stocks. Stock A comprises 65 percent of the portfolio and has a beta of ..
In a production run of 1000 parts, how many defects would be found (to the nearest whole number)? What is the advantage of reducing process variation?
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