Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Bubblyparabola Bubblyparabola
wrote...
Go to Answer
Posts: 124
Rep: 0 0
A year ago
Suppose a dairy farmer is considering the purchase of an additional milking machine at a price of $4000. She expects the discounted MRP of the machine in Year 1 to be $1700, in Year 2 to be $1500 and in Year 3 to be $1200, after which the machine has no value. The farmer should

▸ be indifferent about the purchase because its present value is approximately equal to its purchase price.

▸ buy the machine because its present value is $400 more than its purchase price.

▸ buy the machine because its marginal revenue is $400 more than its marginal cost.

▸ not buy the machine because its marginal revenue is $400 less than its marginal cost.

▸ not buy the machine because its present value is $400 less than its purchase price.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 29 times
1 Reply
Replies
Answer verified by a subject expert
benschmannbenschmann
wrote...
#1
Posts: 114
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Bubblyparabola Author
wrote...

A year ago
this is exactly what I needed
sadiewolf
wrote...

Yesterday
This helped my grade so much Perfect
jaray75
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1273 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1862
  
 4575
  
 218
Your Opinion
Where do you get your textbooks?
Votes: 372
Previous poll results: Do you believe in global warming?