A pizza shop owner who needs to buy a new pizza oven is trying to decide between two different used ones. Whichever oven he buys, it will generate $6,000 net revenue per year. But the older pizza oven has a useful life of only 3 years and the newer oven has a useful life of 5 years. If the interest rate is 7% per year, what is the difference in value between the two ovens? (Assume that each
year's revenue is received at the end of the year.)
a. 413.25
b. $10,892.99
c. $15,745.90
d. $24,601.18
e. $8,855.29
E
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Which of the following pairs of goods would be considered substitutes?
a. Milk and cookies. b. Tires and automobiles. c. Ink and pens. d. Coca-Cola and Pepsi. e. Computers and computer software.
From what you know about the different kind of monopolies, which answer best describes the natural ones?
a. They only exist because the government has established patent laws. b. They can produce services, but not goods. c. The market supports only two or three firms. d. Potential competitors are purchased before they can enter. e. There is a declining ATC throughout the relevant range of production.
Leaders in underdeveloped countries can enhance development by
A. increasing population growth. B. reducing capital per worker. C. implementing improved technology. D. creating new natural resources.
Referring to Figure 18.2, if the exchange rate is currently 14 pesos per dollar, then we expect the dollar to ________ and the peso to ________.
A. depreciate; depreciate B. depreciate; appreciate C. appreciate; depreciate D. appreciate; appreciate