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Graduation comes and the Dean has just shaken your hand. But, instead of taking that nice job offer of $130,000, you decide to take your MBA to heart and start your own business. You take $500,000 out of your savings account and start yet another trendy coffee house in campustown. After your first year, your accountant tells you that revenues were $150,000. Your total costs amounted to just $60,000 worth of electricity, cups, and coffee (your place is "minimalist" trendy). There is no depreciation of your capital stock. Your accountant informs you that you have just turned a clear $90,000 profit, but your economics training makes you suspect of this figure. Carefully discuss the profit situation at your coffee house. How does this change if the "average rate of return" in the economy increases?
Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. A new health report c..
Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
Your company must make a $750,000 balloon payment on a lease 2 years and 9 months from today. You have been directed to deposit an amount of money quarterly, beginning today, to provide for the $750,000 payment. The account pays 8% per year, compound..
Based on the explanation given on “demand hypothesis”, can you cite a practical application using “physician care” as the commodity.
Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..
illustrate the actions the firm took in a certain countries to achieve this, choose a firm which became an MNE with location advantages and depict the steps the firm took in a specific country(s) to accomplish this, select a firm that became an MN..
hink about how you can check whether marginal benefit equals marginal cost for each of your household’s activities. Are your household’s resources allocated fairly? Think about the two ideas of fairness and how they apply in your household. By what m..
Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the? right, but the supply curve shifts more than the demand curve.
If aliens come and take a large percentage of our cows what happens in the market for synthetic leather baseball gloves? (Assume a normal competitive market)(Show the graph, label all relevant points, and explain what happens to price and quantity. E..
1. Identify the main functions of information system and why they are important to the business.
If you drive 20,000 miles per year and the price of gasoline for this analysis is assumed to be $4.00 per gallon, which model should you purchase?
If farmers were to decry the effect of this new technology on the price of milk and lobby government to set the price of milk at the price before the invention, elucidate the result.
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