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A general contractor is interested in buying new construction equipment for grading with a purchase price of $159,000. The equipment will last for 5 years with a salvage price of $22,000. The provided income/benefit information is based on previous record for a contractor with similar situation: Income/benefit information: If the bank offers Certificate of Deposit with an interest rate of 6%, determine the probability that buying the equipment will produce a return less than that of the bank and the probability that buying the equipment will produce a return more than that of the bank.
Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.
How would I find out by how much the price of water needs to be raised to reduce demand by 40% if the price of elasticity is 2.0.
Suppose that the government of Tonga decided to impose or place a price floor on all imported chicken products. Elucidate what is the advantage and disadvantage of this policy.
What effect wills an increase in interest rates have on supply and/or demand of unskilled labour. Would wage rates increase or decrease.
Illustrate what are the major factors that have affected U.S. household consumption since the recession in 2001.
Assume the inflation rate is constant. Write down this number on a piece of paper because you will need the information for a subsequent question.
Suppose that a monopoly has fixed costs of $1000 and marginal cost of $100. They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis. Plot their demand, marginal revenue, marginal cost and average..
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.
EXplain how much output will each firm produce in the Stackelberg Equilibrium. What will be the market price. How much profit does each firm make.
Within two weeks sales had fallen. Utilizing your knowledge of game theory, Illustrate what do you think disrupted McDonald's plans.
Illustrate what is the unemployment rate. Karen sharpens knives in her spare time for extra income.
Illustrate what is Great Reception's profit when producing at the profit-maximizing output
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