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Special equipment can be designed and built for $80,000. This equipment will have a salvage value of $70,000 in year 1, which will decrease b y $10,000 through year 8. Operation and maintenance costs will start at $18,000 in year 1, and increase by 5% per year through year 8. The organization proposing this design can borrow money with 9% annual interest rate. Using tabular approach, find the economic life of this equipment.
A person has an expected utility function of the form U(w)=w^1/2.He has an initial wealth of $25.He also has a lottery ticket that will be worth $75 with probability 1/2 and will be worth $0 with probability 1/2.
Every worker in the factory works on one machine and is able to produce 6 shirts per hour. The cost of running the machine is half a loaf of bread per hour, the cost to employ each worker is 1.5 loaves of bread per hour.
Now.suppose the monopolist has a total cost curve given by TC+16+4Q2(fixed costs are at original level but variable costs changed). Find the monopolist's profit-maximizing quantity and price.How much economic profit does the monopolist earn d)Inte..
A student wants to buy a car. The car's sticker price is $24,000. The student cannot afford the dealer's terms - 12% interest for 60 months, because the student only has a $500 monthly disposable income. What is the highest rate the studen..
a road between fairbanks and Nome, alaska, will have a most likely construction of $4 million per mile. Doubling this cost is considered to have a probability of 30%, and cutting it by 25% is considered to have a probability of 10%. the states int..
Suppose the government places a $15 per carton excise tax on cigarettes in an effort to reduce smoking. Cigarette producers are required to pay this tax out of their revenues. Draw the supply and demand graph based on the original supply and deman..
Consider a simultaneous move quantity-setting game with two firms facing a demand curve p = 100 - q. Both firms have marginal cost of 20. Suppose one firm maximizes profit and the other maximizes revenue, but both take into account the other firm'..
When it is 105 degrees outside and you get thirsty, how much you willing to pay for a 16-ounce bottle of water. If the price is $1.50 per bottle, do you have a consumer surplus or is there a producer surplus or both
A company's marketing dept. obtained information from 10 of the firm's outlets. The information consists of the qty. and price of the products sold at each outlet from the distribution center.
In 2007, Americans downloaded 800 million singles at 99cent and 40 million albums at $10 each. They also bought 3 million singles on a disc at $4.75 each and 500 million albums on discs at $15.
Suppose that velocity is constant and the economy's output of good and services rised by 5% each year, what will happen to nominal GPD and the price level next year if the Fed keeps the money supply constant
The table below shows the total cost of cleaning classrooms at various outputs: 5. Classrooms cleaned per evening 0 3 4 7 8 12 13 16 17 Total cost $100 $200 $240 $300 $330 $400 $440 $500 $600 a) Calculate fixed and variable costs of cleaning 0, 3,..
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