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Supose we have two alternatives which have same output that is the same benefits. If we apply incremental B/C ratio the result gives 0. Can we assume that it is less than 1 and chose the lower cost alternative?
Describe implications for pricing of batteries, brakes and oil changes on the sale of tires.
Now suppose the price of apples is back at $2, but a hurricane destroys half the orchards. Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What happens to the income of Ectenia as a whole
Opportunity to voice an ideology or concern to the masses. What ideology would you want to push forward for the betterment of society? What specific actions would you recommend?
Calculate the book price and quantity effects of the local 8% sales tax. With perfectly elastic demand, who pays the economic burden of such a tax?
Explain the process or mechanism underlying how a market-based economic system allocates scares resources. Identify how this process might differ from a centrally planned or command economy.
Explain how the marginal principle and the pollution tax work together to determine the optimal amount of pollution abatement.
Suppose that the monopoly can use two part tariff pricing. Find the profit maximizing fee and the price per unit. Calculate the total profit.
Suppose that a firm’s only viable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
Using Bureau of Labor Statistics and Federal Reserve Bank of St. Louis, choose a key economic indicator. Discuss and explain how the indicator was created and its current value.
A company in a purely competitive industry is currently producing 1000 units a day at a total cost of $450. If the firm produced 800 units per day, its total cost would be $300.
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course the owners have asked for your opin..
Many controversial issues in public finance concern when a central authority should allow markets to work and when it should intervene. Generally we think of the government as the central authority, but it could be a university as well.
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