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An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places.
Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that:
Green Futures operates a solar panel power generation facility in Scottsboro, Alabama. The current field generates 12 million kilowatt-hours per year, but every year production drops off by 1 million kilowatt hours, as dust and droppings accumulate o..
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
How much will total output increase in terms of percent? What happens to the rental price of capital? What happens to the real wage?
Suppose that Michelle buys a cappuccino from Paul\'s Cafe and Bakery for $6.25. Michelle was willing to pay up to $8.75 for the cappuccino and Paul\'s Cafe and Bakery was willing to accept $2.25 for the cappuccino. Producer surplus is the difference ..
Describe the demand and marginal revenue curves faced by a firm in a purely competitive market. Are they different from those faced by a firm in oligopolistic competition? If so Why?
Elucidate how can you derive an equation describing labor demand in this economy as a function of the real wage also capital stock.
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
Use the National Longitudinal Survey Youth Sample dataset (wagepan) for the questions that follow. The data has been analyzed by Vella and Verbeek (1998) in their study on the impact union membership has on wages for young males.
A U-shaped average total cost curve implies what?
What is the impact of a tax cut in an economy operating under a flexible exchange rate regime on household spending, interest rates.
In general conclude which of the five competitive forces has the most significant impact on approach.
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