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The plant manager may purchase a piece of unusual machinery for $10,000. Its resale value after 1 year is estimated to be $3000. Because the device is sought by antique collectors, resale value is rising $500 per year The maintenance cost is $300 per year for each of the first 3 years, and then it is expected to double each year. Thus the fourth-year maintenance will be $600; the fifth-year maintenance, $1200, and so on. Based on a 15% before-tax MARR, what life of this machinery has the lowest EUAC?
Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like?
Solve for aggregate expenditures (AE) as a function of Y, and compute the equilibrium level of national income. Elucidate your equilibrium in a diagram with AE.
The inverse market demand for fax paper is given by P=400-2Q. There are two firms who produce fax paper. Each firm has a unit cost of production equal to 40, and they compete in the market in quantities. Show how to derive the Cournot-Nash equilibriu..
How would potential avoidance and evasion activities impact the design of a tax system? How does this relate to the so-called Laffer curve that deals with tax rates and tax revenue? (ECON 510) Taxation.
Why does Caterpillar as well as your parents have different opinions about the value of the dollar.
The state of Minnesota is considering building a highway through undeveloped wilderness. The construction will take 1 year and the construction costs are estimated at $10 million. The annual routine maintenance costs are expected to be $1 million per..
Compared with a drip system, a new type of infusion pump reduces the cost of administering chemotherapy from $25 per dose to $20 per dose. The complication rate of each system is 2 percent. Which should you choose? What sort of analysis should you do..
When interest rates in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ______________..
Inflation is not the result but the cause of monetary emission. As there's inflation (because of other reasons not important here), people need more money and the central bank needs to print more money. How can you argue against that? As it seems to ..
You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition, the government purchasing agent views the products as identical and purchases fro..
Mike’s Mechanical Men produces radio controlled robots. If its average costs of production are $25, its fixed costs equal $2,500, and it charges $75 per robot, how much revenue must be generated to earn a profit of $5,000?
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them?
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