New six speed automatic transmission for automobiles offers, Ask an Expert

Economics

New six speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to the traditional four-speed transmissions in front wheel drive cars. If a four-speed transmission car averages 30 miles per gallon and gasoline costs three dollars per gallon, how much extra can a motorist pay for fuel-efficient six speed transmission? Assume that the car will be driven for 120,000 miles over its lifetime of 10 years. The motorist can earn 6.69 % per year on an investment. Instructor hint: to get the correct answer you ust assume the person buys his gasoline at the end of each year.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91568171

Have any Question?Write your Review or question?

Related Questions in Business Economics

Trans-pacific partnership tppwhat possible impact could

Trans-Pacific Partnership (TPP) What possible impact could this event have on global trade? Provide a credible citation. What is President Trump's position on the TPP? Citation?

Suppose a sports team did a study that showed that the

Suppose a sports team did a study that showed that the demand curve for tickets was perfectly inelastic at the capacity of building up to a price of $350 per ticket, at which point it becomes perfectly elastic. 1) Draw a ...

Uni-trax publishers allows its sales team to buy and sell

Uni-Trax Publishers allows its sales team to buy and sell shares that pay out $1 only if the sales in the future fall within a certain range. Suppose that, currently, shares for sales between 1,000 and 2,000 textbooks ar ...

1 suppose you design a game with outcomes a b and c for

1. Suppose you design a game with outcomes A, B and C for which you can estimate probabilities Pr(A) = 0.01, Pr(B) = 0.09 and Pr(C) = 0.9. It costs the player $1 to play each time. If outcome C occurs, they win nothing. ...

Discuss three ranges of the aggregate supply curve explain

Discuss three ranges of the aggregate supply curve. Explain changes in the AD-AS macroeconomic equilibrium due to the aggregate demand shifts and due to aggregate supply shifts. Apply the AD-AS model to the two types of ...

Define economies of scope is this concept related to

Define economies of scope. Is this concept related to economies of scale? Explain. Define economies of scale. How does this relate to returns to scale?

If i am given the following functions for supply amp

If I am given the following functions for supply & demand Demand: P = 50 -.25Q Supply: P = 0.1Q What would the competitive market equilibrium be if the government imposes a subsidy of $6.

Research scenarionbspa social psychologist is interested in

Research Scenario: A social psychologist is interested in whether the number of days spent in a refugee camp predicts trauma levels in recently resettled refugees. He interviews 17 refugees to determine how many days th ...

In families with four children youre interested in the

In families with four children, you're interested in the probabilities for the different possible numbers of girls in a family. Using theoretical probability (assume girls and boys are equally likely), compile a five-col ...

A monopolist faces a market demand curve given by py 100 y

A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20. (a) Find its profit - maximizing output level y and the market price p(y ). (b) Calculate its total revenue, total cos ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert