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Assume the value of a piece of machinery at time t, Vt , is expressed as Vt = (1 - λ)Vt -1 - M
where λ is the depreciation rate and M is the maintenance costs. Write the general solution of the difference equation. Assume the initial value of the machinery is $500,000, the depreciation rate is 10 % annually, and the maintenance cost is $2,000,
(a) What is the value of the equipment after 5 years?
(b) What is its value after 10 years?
(c) Approximately after how many years the value drops to 0?
Why is comparative advantage important in international trade? Briefly describe what is meant by the term "externality" and how it occurs. Briefly discuss the shortcomings of control regulations and environmental command.
apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about 12000 per person
assume the market demand curve faced by a monopolist is and its short-run total cost function isa derive the inverse
Calculate consumption, government purchases, national savings, and investment - explains the role the federal government budgetary outcome
a. Assuming that the price of labor (PL) is $1 and the price of capital (PK) is $2, calculatethe total cost of production for each of the five levels of output using the optimal (leastcost)technology at each level .b. How many labor hours (units of l..
1. consider a market for an electronic component used in airport radar systems. two firms hold a patent on the
Cities do not reproduce themselves. Why do people move to some cities and away from others You may want to examine why some cities grew from 1990 to 2000, but you need to examine key concepts that underlie urban growth.
Explain how the Laws of Supply and Demand are illustrated in this graph and describe the equilibrium price and quantity in this market.
Demand estimation and forecasting and income elasticity of demand
Discuss the implication of the learning theories for the use of instructional media
consider the organization you selected wal-mart. integrate the concepts and operationsmanagement principles that youve
Freemiumis a business model that gives free access but charges for premium features. Many social games fall into this category. On the social networks, why is it difficult to generate revenue through advertising? Why is it particularly hard for..
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