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The EZ Credit Company offers to loan a college student $6,200 for school expenses. Repayment of the loan will be in monthly instalments of $382.95 for 18 months. The total repayment of money is $6,893.10, which includes the original $6,200, $1,234.72 in interest charges, and -$541.62 for a required life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan?
Consider a rancher-farmer economy. Assume that the rancher has no choice over how many cows to raise but either the farmer or the rancher (or both) can build a fence to eliminate the crop damage of $150. However, the costs of installing the fence are..
If firm A produces 100 record albums and 100 video cassettes, how might firm A be made better off by shifting its output mix. Explain your reasonings clearly.
His uncertainty about total sales of the book can be represented by a random variable with a mean of 30,000 and a standard deviation of 8,000. Find out the mean and standard deviation of the total payments he will receive.
An increase in the fixed cost of working will ________ labor force participation and ________ hours of work (of those working before and after the increase in the fixed cost of working) A worker is indifferent between job one lasting 4 hours a day, j..
The demand for MICHTEC's products is related to the state of the economy.
Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
1. explain why work done at home is not incorporated however housing services that are also done at home are
What is the value of consumer surplus? What is the value of the deadweight loss created by this monopoly?
Consider an industry in which two types of managers run firms, Genius and Ordinary. There is a fixed supply of 100 genius managers, whereas there is unlimited supply of ordinary managers. Both types of managers are willing to work for a salary of $14..
You are the CEO of a Fortune 500 company. You have two objectives: 1. invest $5 million cash on hand short term (overnight to one month); and 2. borrow $100 million for your firm’s working capital needs.
Decide whether the demand for paint is elastic, unitary elastic or inelastic. Explain you're reasoning also interpret your results.
What is the -maximing combination of labor and capital the firm should use? What is the resulting level of output? What is the economic profit? Is this the least costly way of of producing the profit-maximizing output?
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