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Two plans have been proposed for an express passenger train between Springfield and Kansas City. The plans are summarized in the table below. Costs and benefits are in millions of dollars. Assume a MARR of 10%. If neither plan is done, then there would be no costs nor benefits. Info Plan A Plan B Econ. Life, Years 40 20 Annual Benefits $25 $22 Annual M & O Cost $5 $4 Initial Cost $300 $160 Assume identical replacement costs and benefits for Plan B and use annual analysis when computing the ratios below: What is the benefit-cost ratio of plan A.
There are two types of customers in a market for sheet metal. Let P represent the market price.
Is war only called for when our country is directly threatened by another country, or are there additional reasons to justify taking up arms against another nation? If not, then are there alternative responses our country can take to other government..
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk increases, then the budget curve will: A. An inward rotation of the budget curve B. An outward rotation of the budget curve C. A parallel outward s..
Consider a country in which Y = 200 K2/5N 3/5. Assume in this country they save 20% of their income, population grows at 3% per year, and depreciation of capital occurs at 10% per year. Use the Solow model. Compare the effectiveness of i) a 50% incre..
Should the government increase the minimum wage? What should be the GUIDELINES for an increase? What are some of the disadvantages of an increase?
Which of the following is often not a disadvantage of decentralization?
We are always to keep the question of human nature in the background of all our discussions. Each author of the texts we read has a philosophy about human nature. Some assume universal elements that cut across all individuals, times, and cultures; o
Suppose a domestically produced motor bicycle sells at a world price of $5,000 under unrestricted trade. The domestic producer uses $3,000 worth of imported inputs, (VA*). What is the domestic price of the imported motor bicycle? What is the possible..
Calculate how large A would have to be so that in the new LRCE, the number of firms is twice what it was in the initial equilibrium.
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive ..
Suppose at current factor prices a country’s manufacturers use 60 hours of labor for each acre of land and food is produced using only fifteen hours of labor per acre of land. If the economy’s total resources are 1800 hours of labor and 180 acres of ..
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