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When two mutually exclusive projects are considered, the NPV calculations and the IRR calculations may, under certain circumstances, give conflicting recommendations as to which project to accept. The reason for this result is that in the NPV calculation, cash inflows are assumed to be reinvested at the cost of capital, while in the IRR solution, reinvestment takes place at
the hurdle rate.the accounting rate of return.the prime rate.the project's internal rate of return.
You are planning a short-run production function for your firm, and you have collected the following data on labour usage and output: Calculate estimates of total. Average, and marginal products when the firm employs 23 workers
Keynes describws that the level of output and employment in the economy was determined by aggregate demand or effective demand.
Use the utility function to answer the questions, below: (x1, x2) = exp (√(x 1 ) + √(x 2 )-Derive the Marshallian (ordinary) demand function for good1 and 2, x i *(p,l), i =1,2 . Then derive the indirect utility function (p,l).
Illustrate what effort does the principal want to induce when effort is not observable. Illustrate what is the optimal contract for the principal.
Suppose each cake costs the same to make, what is the average cost to produce a cake. Compute Alyssa's labor productivity ration in dollars per hour for each type of cake.
Explain how would each economist explain unemployment and what policies would each advocate.
Illustrate what is the price elasticity of demand. From the price elasticity elucidate the new rates be for 2009 if the demand increases at the same rate.
Elucidate the percentage rate of Full Employment and Inflation that that these two organizations try to keep as its target.
The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."
Compute producer surplus, how much is the difference between the producer surplus and profit in this case
Briefly accounting describe two limitations of national income. On the basis of these data calculate GDP, GNP, NDP, NI, PI, and disposable personal income.
If the reasons for the EU's high structural unemployment are so obvious, why not governments relaxing strict labor laws and reducing social charges levied on employers.
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