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A product is expected to earn 25,000 at the end of the first year, and to decrease 500 subsequent year. This product is going to be in service five years. The market value at the end of five years is 5,000. At an interest rate of return of 5%, the equivalent annual worth is most nearly: 1. EAW = 16,855.95 2. EAW = 14,953.60 3. EAW = 24,953.61 4. EAW = 14, 048
The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt mostly credit cards and auto loans but maintained the deductibility of interest payments on mortgages and home equity loans.
A monopolist faces the demand curve Q = 60-P/2. The cost function is C=Q2. Find the output that maximises this monopolist’s profits. What are the prices at profits and that output? Find the elasticity of demand at the profit maximising output.
What is Nancy's lifetime income if she gets no schooling? What is it if she goes toschool for all 60 remaining years of her life? In words, describe the "cost" to Nancy ofchoosing to attend school for 1 additional year.
The division of a large office services company that makes high-end copiers recently signed a five-year, $25 million contract for IT services from CGI Group, a Canadian information technology company.
The demand-supply market models (for each market below) to graphically illustrate and explain the following scenarios (in the short run). Identify for each scenario what the effects on price and quantity are likely to be. State your assumptions.
Suppose you currently live and work in cleveland, earning a salary of 70,000 per year and spending 30,000 for housing. you just heard that you will be transferred to a city in california where housing is 55% more expensive. In negotiating a new sa..
When appropriate, the optimal solution to a maximization linear programming problem can be found by graphing the feasible region and: finding the profit at every corner point of the feasible region to see which one gives the highest value.
What do economists mean when they refer to "economies of scale" Why do economies of scale exist in the context of hospital services Does this mean a hospital market comprised of a few large hospitals is preferable to a hospital market comprised of..
The night before an economic exam, you decide to go to the movies instead of staying home and working your MyEconLab study plan. You get 50 percent on your exam compared with the 70 percent that you normally score.
The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD model.
Markets are a very good way to organize economic activity in our economy. Why do we classify price floors and ceilings as a type of market failure and why does the government need to get involved in these types of markets
The consumption of alcohol is often cited as an example of a negative externality. Explain a situation in which alcohol would be considered a negative externality. 3. Describe the purpose of antitrust laws. What do they accomplish.
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