Motorist pay for fuel-efficient six speed transmission

Assignment Help Business Economics
Reference no: EM13894124

New six speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to the traditional four-speed transmissions in front wheel drive cars. If a four-speed transmission car averages 30 miles per gallon and gasoline costs three dollars per gallon, how much extra can a motorist pay for fuel-efficient six speed transmission? Assume that the car will be driven for 120,000 miles over its lifetime of 10 years. The motorist can earn 6.69 % per year on an investment. Instructor hint: to get the correct answer you ust assume the person buys his gasoline at the end of each year.

Reference no: EM13894124

Questions Cloud

Demonstrate the compensated and uncompensated demand curves : Explain, define and demonstrate the income and substitution effects of a fall in the price. Illustrate in a figure. explain, define and demonstrate the compensated and uncompensated demand curves. Illustrate in a figure
What are the two flows in the economy : Explain why calculating GDP using income approach or expenditure approach yield the same for any economy. Use the idea of circular flow to explain how expenditure approach and income approach is shown in the circular flow diagram. What are the two fl..
About perfect versus imperfect asset substitutability : We noted in this chapter that foreign central banks, especially in Asia, accumulated large dollar foreign reserves after 2000. One persistent worry was that those central banks, fearing dollar depreciation, would shift their reserve holdings from dol..
Income is more unequal than distribution of wealth : In the United States, the distribution of income is more unequal than the distribution of wealth. Explain this idea and address how reducing inequality could be a macroeconomic goal. Finally, what insights would Marx provide on understanding why ineq..
Motorist pay for fuel-efficient six speed transmission : New six speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to the traditional four-speed transmissions in front wheel drive cars. If a four-speed transmission car averages 30 miles per gallon and ..
Explain the three neoclassical macroeconomic goals : Explain the 3 neoclassical macroeconomic goals. How do we know if we are meeting each of these goals? Additionally, provide a criticism of ONE of these goals.
Quality of water has suffered as pollution washed into lake : Suppose you live in a community that relies on clean drinking water from a nearby lake. Lately you have noticed that the quality of the water has suffered as pollution washed into the lake. Is this a market failure? Explain.
Harvesting king crab and label it as social cost curve : King crabs in the Bering Sea are a common resource. The following diagram shows the demand curve (the MB of consumption) and the supply curve (the MC of production) in the market for the king crab. draw the social cost curve associated with over harv..
Calculate the her find a hl-hirschman index : An industry consists of three firms with sales of $235,000, $680,000, and $315,000. Calculate the Her find a hl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).

Reviews

Write a Review

Business Economics Questions & Answers

  What is the dominant source of capital funding in the us

What is the dominant source of capital funding in the United States? Given this result and the fact that most corporations are net borrowers, what decisions must most managers face in order to address this financial deficit?

  Another investor be willing to pay for your security

Suppose that one year has elapsed, you have received the first payment of 600$, and the market interest rate is still 5%. How much would another investor be willing to pay for your security?

  Relationship between prices of oil also level of real gdp

Illustrate what if, anything cans you conclude about the relationship between the prices of oil also the level of real GDP in the United States

  What is the expected profit for barnes & noble?

How many books should Barnes & Noble order? What is their expected profit? How many books do they expect to sell at a discount?

  Utilizes the keynesian cross to predict the impact

utilizes the Keynesian cross to predict the impact on equilibrium GDP of equal-sized rise in both the government purchases also taxes

  Explain how many people would find jobs each month

If there were 30 million employed Theralanders and Theraland had a job-separation rate of 15% per month, explain how many people would find jobs each month.

  What is the likely post-merger bargaining outcome

Suppose that they are negotiating with two non-drowsy allergy drugs, Claritin and Allegra, for inclusion on the formulary. The "value" or "surplus" created by including one non-drowsy allergy drug on the formulary is $100, but the value of the second..

  Calculate the equivalent uniform annual cost for the tractor

A tractor costs $19,195 and will be used for 5 years, at which time its estimated salvage value will be $4,000. Maintenance costs are estimated to be $100 for the first year, increasing by $100 each year thereafter. If i=12%, calculate the equivalent..

  Describe the common allegation

Describe the common allegation that when all firms in an industry are charging the same price, this indicates the absence of competition and the presence of someform of price-setting agreement

  State whether the actions will increase or decrease gdp

State whether the following actions will increase or decrease GDP:

  Omitting relevant variable from a regression model

For each of the following statements, answer “agree” or “disagree,” and provide justification. “Omitting a relevant variable from a regression model generally causes bias in the OLS estimators.”

  Problem with third-party financing of so much of health care

A problem with third-party financing of so much of health care is that

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd