Aconsulting engineering firm is trying to decide whether it should purchase ford explorers of toyota 4runners for company principals. the models under consideration would cost $29,000 for the ford and $32,000 for the toyota. the annual operating cost of the explorer is expected to be $200 per year less than that of the 4runner. the trade-in values after 3 years are estimated to be 50% of first cost for the explorer and 60% for the toyota. if the firm's marr is 18% per year, which make of vehicle should it buy?

Answer the reduction in economic surplus resulting from not being in competitive equilibrium;

Answer$30.01;

With reference to the solutions, following things may be noted1) homogeneous solutions comprises of single phase.2) heterogeneous solution comprises of more than one phase.3) in colloidal solution, solute is evenly distributed in solvent. in such system, it is difficult to separate solute and solvent.4) in suspension, there is an uneven distribution of solute in solvent. in such system, solute and solvent gets separated on standing long.    blood is a homogeneous and colloidal solution,salad dressing is a heterogeneous and suspension solution.