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Q. Covington Corporation purchased a vibratory finishing machine for $20,000 in year 0. The useful life of the machine is 10 years, at end of which the machine is estimated to have a salvage value of zero. The machine generates net annual revenues of $6,000. The annual operating and maintenance expenses are estimated to be $1,000. If Convington's MARR is 15%, how many years will it take before this machine becomes profitable?
Compute the value of the Keynesian spending multiplier for transfer payments. Give the amount of the change in the equilibrium level of Real GDP due to a $6 increase in unemployment compensation.
Use a budget constraint and indifference curve to show and elucidate how your consumption changes.
Explain what happens in these two markets as the number of sellers drops to only one seller. c) explain how part b) illustrates to the first experimental principle
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
external benefit generated by sale of marginal widget is $100, regardless of how many widgets are purchased.
If each economy specialized in its comparative advantage, what range of prices would bacon trade at in terms of eggs.
Compute the current yield, the coupon rate, and the yield to maturity if the bond is puchased for $940.
Explain how the circular flow diagram relates to the current economic situation.
Hair Grow Co. has a demand curve of P=101-.00002Q Marginal cost for producing Hair Grow pill is $1. Illustrate what is the profit-maximizing price and quantity. What is the profit.
Do you agree or disagree with the statement that: "A monopolist always charges the highest possible price."? Explain. b.) Why can't an individual firm raise its price by reducing output or lower its price to increase sales volume in a purely competit..
During tough economic shocks in our economy, you will find that the government is needed to get involved. How do you think the government can help improve market outcomes?
From the e-Activity, assess how business leaders use managerial economics to make business decisions indicating how profits may be impacted.
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