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A firm is considering whether to purchase a fork lift. With no fork lift, the firm makes $5000 profit every period(except the first period, in which they make $5500 - w of profit, where w is the price of the fork lift).They except that the fork lift will last forever. The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
What is the solution for the manager of Collinis Import Autos believes the number of cars sold in a day (Q)depends on two factors.
the shortcomings of NAFTA for the last 20 years including what each country has lost as a result of NAFTA.
These forecasts for the Internet creating “perfectly competitive” markets were based on the competitive model we have presented in this chapter. Do you think the Internet has helped create more competitive markets or less? Why?
What price and quantity will result once the copyright expires and competition emerges in this market. Elucidate your answer.
what his students remembered fron introductory macroeconomics about the creation of money. He reported that few students were confident enough or remenbered enough to reply correctly to his question.
Assuming that the Hawaiian Sea Salt Company is able to charge different prices in the two markets, what are the profit maximizing prices and output levels for sea salt in the two markets?
The market demand curve for this product is estimated to be: Q = 6009 – 25P where Q is the number of plate covers per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by TC = 120 + ..
Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and net annual revenue. Use a MARR of 4% per year and a 5-year study period.
In a waiting line model situation, arrivals occur around clock at a rate of six per day and service occurs at one very three hours. Assume Poisson and exponential distributions. Illustrate what is Mean Arrival Rate λ
Explain why at first patents might seem such as a deterrent to growth because in effect they restrict the use of new technology
Explain what happen if all workers and jobs were identical, there would be just one wage rate, assuming perfect information and costless mobility.
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