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Calculating costs
Ginny is working for a marketing firm making $50,000 per year but considers starting her own marketing company. Ginny has determined that to launch the business, she needs to invest $80,000 of her own funds. The annual cost of running the business will include $60,000 for the rent of the office space, $200,000 for employee wages, and $7,000 for materials and utilities. Ginny plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 5%.
Trace through the circular flow model in Chapter 6. What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?
Lets assume that we admitted more students this semester (1200) than last (1100) and because of it there is a shortage of “B” parking spaces. Students also complain about the parking permit price ($100).
Illustrate why does inflation affect the increase in Social Security and other benefits. Is this effect a cost of inflation, as the article suggests.
1) the mission, vision, and value statement of an actual firm 2) whether or not you feel the firm has been successful in adhering to their statements and 3) provide examples to support your response to number 2
What amount will be required to purchase, on an engineer’s 40th birthday, an annuity to provide him with 30 equal semiannual payments of $1,000 each, the first to be received on his 50th birthday, if nominal interest is 4% compounded semiannually?
Borrowing in the form of debt is riskier than borrowing in the form of equity. Explain why this is true.
The Wall Street Journal's experience after it increased its price to 75 cents. Illustrate what implicit assumptions are the publisher and the analyst making about price elasticity.
How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.
What are the characteristics of an oligopoly? Using the concept of duopoly and the price leadership model, discuss demand and pricing strategies in an oligopolistic market structure.
Earlier this year, Greek citizens, fearing currency changes or capital controls, took billions of euros out of their bank accounts. Some of it they sent to banks in other countries, and some of it they even hid in flower pots, freezers, and yes, unde..
There are two distinct sectors: taxidermists (X) and tap dancers (T). It is surprising that there is complete labor mobility between the two sectors. There are 200 equally talented workers who supply their labor inelastically.
A pipeline contractor can purchase a needed truck for $36,000. Its estimated life is 6 years, and it has no salvage value. Maintenance is estimated to be $2,200 per year. Operating expense is $60 per day. The contractor can hire a similar unit for $1..
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