Identify the curve that represents the regular gasoline vehicle and hence determine the range of annual mileage for which it is the most e

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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1. Identify the curve that represents the regular gasoline vehicle and hence determine the range of annual mileage for which it is the most economical of the three vehicle types.

 

A.

between​ 37,000 and​ 49,000

 

B.

more than​ 49,000

 

C.

less than​ 37,000

 

D.

more than​ 37,000

 

E.

less than​ 25,000

 

F.

between​ 25,000 and​ 37,000

 

G.

between​ 25,000 and​ 49,000

2. Identify the curve that represents the hybrid vehicle and hence determine the range of annual mileage for which it is the most economical of the three vehicle types.

 

A.

between​ 25,000 and​ 49,000

 

B.

between​ 37,000 and​ 49,000

 

C.

between​ 25,000 and​ 37,000

 

D.

less than​ 37,000

 

E.

more than​ 37,000

 

F.

more than​ 49,000

 

G.

less than​ 25,000

The following graph has plots of the Equivalent Uniform Annual Costs (EUAC) of three vehicles as listed in the table. The EUAC is based on the initial prices of the vehicles and equivalent fuel consumption.
Hybrid
Regular
$28,000 $32,000
Electric
EUAC
Price
$40,000
$15,000
60
Miles/gal
Life (yrs)
25
35
5
5
5
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
y
$7,000
$6,000
10,000
20,000
30,000
40,000
50,000
60,000
Annual mileage
Answer the following three questions:
Transcribed Image Text:The following graph has plots of the Equivalent Uniform Annual Costs (EUAC) of three vehicles as listed in the table. The EUAC is based on the initial prices of the vehicles and equivalent fuel consumption. Hybrid Regular $28,000 $32,000 Electric EUAC Price $40,000 $15,000 60 Miles/gal Life (yrs) 25 35 5 5 5 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 y $7,000 $6,000 10,000 20,000 30,000 40,000 50,000 60,000 Annual mileage Answer the following three questions:
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