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A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six-year study period. Use the PW method and a MARR of 18% to determine whether this is a good investment. (5.3)
Yet medicines with brand names that the man recognizes from TV commercials sell for more than the unadvertised versions. Elucidate in economic terms, this perplexing situation to the father.
The maintenance on a machine is expected to be $155 at the end of the first year, and increasing $35 each year for the following seven years. What present sum of money would need to be set aside now to pay the maintenance for the eight-year period? A..
A firm in the market for designer jeans has some degree of monopoly power. The demand curve it faces has a price elasticity of demand of -2, while the price elasticity demand of the market is -1.25. Moreover, the firm has a constant marginal cost of ..
The relationship between the government's budget deficit and its spending is:
A mineral rights auction is not the same as a common-value auction. An auctioneer is always indifferent between different kinds of auctions. The Dutch and first-price, sealed-bid auctions are strategically equivalent. An English auction always yields..
Do US non-profit organizations with tax exemption under Section 501(c)(3) of its Internal Revenue Code which have investments (such as university endowment funds) have to divulge these investments in any sort of filings? If so, are these required to ..
Explain how do you suppose the tickets were rationed. Sketch supply and demand curves for the tickets to each of the two games.
The graph also shows the marginal revenue curve faced by this firm. Hypothetical cost and revenue curves for a computer producer. Explain how many computers will the monopolist sell to maximize profits.
Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve.
Excise tax is levied on the buyers of a good, then after the tax buyers will pay for each unit of the good.
Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the economys cow population.
Explain why do equity holders care more about ROE than about ROA. If a bank doubles the amount of its capital and ROA stays constant, what will happen to ROE.
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