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Q. A construction company is bidding on a project comprising five high-rise buildings to be erected one after the other. The company considers the use of advanced, hydraulically operated tunnel forming systems to be purchased and used 60 times on each building over a 1-yr period of time. The tunnel forms cost $30/sf. No salvage value is expected at the end of the 5-yr project. As the two last buildings to be constructed slightly differ in their design, the forms will have to be modified at the cost of $6/sf. Periodical maintenance is expected every 120 uses at a cost of 4% of the purchase cost. Consider an annual interest rate of 10%. What is the expected average material cost per sf for each use?
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
Outline reasons why the marginal revenue product differs between workers in different jobs.
Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.
Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
Suppose that, instead, the market quantity demanded at a price of $1.33 is only 75,000. How many firms do you expect there to be in this industry.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Wheat farmers will receive total revenues from consumers and the government totaling
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