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A large processing plant is trying to decide between two air scrubbing units. The unit is required by clean air regulations and will be replaced by an identical unit of itself at the end of its useful life into the foreseeable future. Costs and benefits are as follows: Cash Flow A B Initial cost $17,600 $24,500 O & M costs / year $ 2,500 $ 1,950 Salvage value $ 2,250 $ 7,500 Useful life (years) 9 11 Assume an interest rate of 12% per year. Use equivalent uniform annual cash flow analysis to determine which pump should be selected.
Elucidate a firm competes in the market. Does the firm engage in price or non-price competition
Elucidate whether demand for that products and/or services is relatively price elastic or relatively price inelastic and explain why.
Distribution of costs and benefits Suppose that the government decides to guarantee an above market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram.
Ten competitive saw mills currently supply lumber to a market whose demand q, depends on lumber price, p, as follows,
develop a regression equation using any data. Use the regression equation to focus the demand for the product you chose for the next three periods. Assess what the results of the regression equation tells managers and how it is likely to impact de..
Currently, the island of Guam does not have a minimum wage need but uses the United States minimum wage as a reference. Give a theoretical justification for why imposition of a $5.15 minimum wage.
Nancy Folbre argues that children are closer to being public goods than they are to being pure private goods. What are the major elements of this argument Do you find the argument persuasive. how the costs of children should be borne
Exclude the appealing logic of the Coase theorem, private actors often fail to resolve on their own the problems caused by externalities.
Does not economic growth and the innovation that generates it, produce more and more substitutes or new discoveries of reserves
The US cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement.
Suppose that as an owner of a federally insured S&L in the 1980s the price of real estate falls, and most of your loans go into default. In fact, so many loans go into default that the net worth of the S&L is a negative($5 million). Federal regula..
Long Run Costs Suppose the firm has only three possible scales of production as shown below: a. Which scale of production is most efficient when Q =65 b. Which scale of production is most efficient when Q = 75 c. Trace out the long-run average cost c..
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