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“Production should be for people and not for profit.” Answer the following questions concerning this statement:
a. If production is profitable, are people helped or harmed? Explain.
b. Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?
Obtain the demand equation for natural gas and calculate the annual change in consumer surplus
Why is the demand for water price-inelastic and in those regions where outdoor use of water makes up relatively large portion of total use, the price elasticity is high. Why?
Suppose that you are the only seller of paper in the market, and you know that John already has a printer, how much will you charge him for the (100 units of) paper?
Using the same product example above, analyzing how the risk tolerance factors play in supplying the good or service and how this should influence management's decisions.
There are two goods in the economy, anchovies (a fish) and bananas ( FARM product). Draw the economy's production possibilities before and after a natural disaster that lowers the banana harvest but does not affect anchovies.
The Theory of the Firm document, the Friedman article, and the information in chapter 4 argue that the main goal of a firm in a market economy is to maximize profit (shareholder wealth)
Economics of Markets and Organizations
the company ABC Inc. bought a machine for automatic playback of " software " at a cost of $ 20,000 ( the "original cost" ) . The expectation was that the machine had a useful life of 5 years , after which have a residual value of $ 5,000 ( "salvage v..
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
Suppose there is a tax cut, holding constant government purchases and all other factors affecting the AD curve. Illustrate the short run effects on output and the price level and LABEL them.
Which tool do you think is most commonly used If the Fed wanted to decrease the supply of money in the economy, would the Fed buy or sell securities in the open market and what would be the first effect of this policy.
Discuss how inflation affects the rate of return required on the investment project, and the distinction between a real and a nominal (or‘money terms') approach to the evaluation of the investment project under inflation.
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