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1. Many small businesses do not earn an economic profit. Why do they stay in business?
2. A firm is considering adding an addition to their factory. The firm will need to borrow the money at 7% interest. The investment will earn a 5% rate of return. Should the firm add the addition? Explain.
3. Are all fixed costs also sunk costs? Explain.
A large automobile manufacturing company is considering the installation of a high-tech handling system. The initial cost of the system is $3,000,000 and it is estimated it will save $750,000 per year in manual labor, and will incur $27,500 in operat..
Discuss how both northerners and southerners in the early U.S believed winning the struggle over the expansion of slavery was the key to preserving their freedoms and to preventing their domination by the other section of the nation."
How can a manager use the price elasticity of demand in making decisions?
Which of the following could keep a market from ending up in equilibrium?
Discuss how each of the following terms and concepts applies to the notion of a watch: object, attributes, behaviors, class, inheritance (consider, for example, an alarm clock), abstraction, modeling, messages, encapsulation, interface and informa..
For this SLP take a look at how your organization manages its inventory and then answer the following questions.
The overall effectiveness of the organ procurement system in the United States. What are its strengths and weaknesses.
Equilibrium exists where the price level is 1.25 and the money supply equals 21 billion. What is a new possible equilibrium when the Federal Reserve buys some government bonds?
Find and plot the SAC and SAVC curves. For this function, the SMC curve is given by SMC(q) = 0.2q +10. Include this curve in your diagram for part b. Write the equation for the firm’s short-run supply curve and indicate it in the above graph
Hotelling’s Model (10pts) Consider the Hotelling’s model with three players, each chooses a policy position on the real line. Is all three players choosing xm (the ideal policy of the median voter) a Nash equilibrium? Explain your answer.
q1. a consumer has 400 to spend on goods x and y. the market prices of these two goods are px 10 and py 40. what is
In a monopolized industry, the demand function has a constant elasticity: q = D(p) = p−ε where ε > 1 is the elasticity of demand. Marginal cost is constant and equal to c. (i) Show that a social planner (or a competitive industry) would yield a total..
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