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Eddie is a production engineer for a major supplier of component parts for cars. He has determined that a robot can be installed on the production line to replace one employee. The employee earns $20 per and benefits worth $8 per hour for a total annual cost of $58,240 this year. Eddie estimates this cost will increase 6% each year. The robot will cost $16,500 to operate the first year with costs increasing by $1500 each year. The firm uses an interest rate of 15% and a 10-year planning horizon. The robot costs $75000 installed and will have a salvage value of $5000 after 10 years. Should Eddie recommend that purchase of the robot?
The first payment must be made in 30 days. What is the nominal annual interest rate the bank is receiving?
If Tarzan also Jane are each nation willing to give-up on hour of patrol for 2 pounds of fruit, is the current allocation of Cheetah's time Pareto efficient.
The scenario is that I am going to open restaurants in China. One in Shanghai and one Beijing. These restaurants will serve healthy food such as salads, sandwiches, pizza, soup,
At what level of employment would diminishing returns set in for the variable input?
For the 2nd quarter of 2011, identify the estimate for the current dollar value of Gross Domestic Product for the USA and explain in words what this number measures.
Determine the effects of a temporary increase in the quantity of government purchases on current equilibrium output, employment, the real wage, the real interest rate, the nominal interest rate, and the price level.
Illustrate what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources.
Suppose that the substitution effect of an increase in the wage rate exactly offsets the income effect as the hourly wage increases from $12 to $13. What would the supply of labor curve look like over this range of wages? Why?
Using the 'standard' Taylor rule with Inflation PCE (not the core), and using end of 2011 data (2011-10-01) what is the federal funds rate implied by the 'standard' Taylor Rule?
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
In the 1990s, five firms supplied amateur color film in the United States: Kodak, Fuji, Konica, Agfa, and 3M. From a technical viewpoint, there was little difference in the quality of color film produced by these firms, yet Kodak's market share wa..
Elucidate economic influences which can affect the airline industry in a negative way.
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