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A small start-up company invested in a new plant with an initial cost of $10 million. Operating costs for the plant were $3 million per year for 7 years. There was a special one-time charge of $1 million in year 2 to correct unexpected equipment problems. Revenues were $3 million in year 1, and increased by $1 million per thereafter through year 7. Determine the company's rate of return on this investment.
What will happen if the case goes to trial after the defendant (injurer) offers to settle for $10,001? Is the plaintiff (victim) better off accepting this offer or going to trial - What do you expect to happen in pre-trial negotiations?
Suppose that a firm's production function is Q= min{K,L} . Currently, the wage is w= 8 and the cost of capital is r=8. What is the minimum cost method of producing Q=40 units of output? Suppose that wages fall to w=4. Keeping total cost the same, wha..
Alexander Company is a used car dealership serving Los Angeles Metropolitan area. The corporation has experienced a rather sharp decline in used car prices in recent years.
In a price-fixing agreement amongst two oligopolists, each seller's best strategy would be to maintain the agreement, as it would leave both of them better off. The smaller the share of the fringe firms in an oligopoly market, the smaller will be the..
Assume that the product depicted below generates external costs in consumption of $3 per unit. What is the market price (market value) of the product? What is the socially optimal output?
1) Suppose the market for semiconductors in the U.S. is characterized by: Qd = 200 - 40P [Demand] Qs = 40+ 40P [Supply] The market for semiconductors in the rest of the world is characterized by: Qd = 160 - 40P [Demand] Qs = 80 + 40P [Supply]
A decrease in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant.
Given the following annual information about a hypothetical country, answer questions a through d
Lorelai purchases an inn in 2004 for $200,000. Today (2016) if she wants to operate it as a bed and breakfast she would have to pay her cook $25,000/year, her assistant manager $50,000/year, and $10,000 in electric bills. What are the economic costs ..
Your organization is considering offering a flexible benefit plan but has been advised that it could create a higher risk for adverse selection.
For the following utility functions and prices. Determine the optimal bundle of x1 and x2 given the stated prices and income. Illustrate the optimal consumer choice decision in each of the two cases below.
explain how will you guide him regarding the redressal forums, the nature of making complaints and the working of the agency.
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