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How many kilometers must a car be driven per year for leasing and buying to cost the same? Use 10% interest and year-end cost. Leasing: $0.15 per kilometer Buying: $5000 purchase cost, 3-year life, salvage $1200, $0.04 per kilometer for gas and oil, $500 per year for insurance
For each of the following costs, decide whether or not it is a fixed cost or a variable cost for the firm in the short-run. Provide a brief argument for your classification of the cost. A one-year lease on the building in which the building is locate..
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 per..
q1. if the ad shortfall is 800 billion and the mpc is 0.8a explain how large is the desired fiscal stimulus?b explain
Suppose that there is a total of 40 units of a non-renewable resource that will be completely depleted in two periods. This resourve has a demand curve Q= 100=2P in each period and a constant marginal extraction cost of $10. Assume the interest rate ..
The length of pregnancies are normally distributed with a mean of 268 days and a standard deviation of 15 days. What fraction of pregnancies fall within ±10 days from the mean length of pregnancies? What middle interval (of days) includes 0.95 fracti..
A small dam was constructed for $2,000,000. The annual maintenance cost is $15,000. If interest is 5%, compute the capitalized cost of the dam, including maintenance.
Suppose the world price of lumber is above the Canadian price of lumber. What would be the impacts of free trade in lumber between Canada and the rest of the world? Use a diagram to show the impact on: Canadian price; Canadian consumption; Canadian p..
Price elasticity of supply is always positive except when supply is a. perfectly inelastic. b. relatively elastic. c. either relatively elastic or relatively inelastic. d. relatively inelastic.
Discuss/justify the following statement: “When a change in a country’s nominal interest rate is caused by a rise in the expected real interest rate, the domestic currency appreciates. When the change is caused by a rise in expected inflation, the cur..
The computer industry not spread more evenly around the globe? Identify three product categories for which you think the markets are global. Can you find three that are multi domestic? What market data would you need to support your assertion?
What performance percentage would you use to trigger executive bonuses for that year.
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
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