A new pinball machine will generate $3,000 in additional revenue each year for a game arcade. It has a useful life of three years. Assume that each year's income is received at the end of the year. If the interest rate is 10 percent (0.10) per year,, what is the present value of a new pinball machine to the arcade?
a. $6,761.83
b. $8,181.82
c. $9,000.00
d. $7,460.56
e. $8,206.61
D
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A business cycle peak is a
A) small positive deviation from trend in real GDP. B) relatively large positive deviation from trend in real GDP. C) small negative deviation from trend in real GDP. D) relatively large negative deviation from trend in real GDP.
A . What kind of market failure is associated with goods that have negative externalities? b. How can the government intervene in free markets to correct the market failure associated with negative externalities?
Suppose Smith wants one iPhone no matter what the price is between $0 and $350, Jones wants one iPhone no matter what the price is between $0 and $200, and Griffith wants one iPhone no matter what the price is between $0 and $450. In this case, each individual buyer's demand curve will be __________________ and the market demand curve will be __________________
A) downward sloping; vertical B) vertical; downward sloping C) vertical; vertical D) downward sloping; downward sloping
Refer to the accompanying figure. At a price of $3, there will be:
A. an excess demand of 7 units. B. an excess supply of 7 units. C. an excess demand of 5 units. D. an excess supply of 2 units.