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Approximately 90,000 students per year apply to the top MBA programs.
Using the concept of net present value and opportunity cost, explain when it is rational for an individual to pursue and M.B.A. degree.
What would you expect to happen to the number of applicants if the starting salaries of managers with an M.B.A. degree remained constant but the salaries of managers with bachelor's degrees increased by 15%? Why?
Which of the following are microeconomic problems? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Slow growth. The pricing policies of firms. Un..
Which of the following statements about an increase in aggregate demand is false? An increase in aggregate demand can be caused by a decrease in other countries’ interest rates. An increase in aggregate demand will result in no change in the price le..
Two firms are ordered by the federal government to reduce their pollution levels. Firm A’s marginal costs associated with pollution reduction is MC = 150 + 3Q. Firm B’s marginal costs associated with pollution reduction is MC = 9Q. The marginal benef..
Trace the problems inherent in the unequal distribution of the benefits produced by the American economic system. Focus on the efforts of labor to change that inequality and on capital to retain its favored position. Describe evidence of inequality a..
An industry consists of four firms with sales of $300,000, $700,000 and $250,000, and $400,000. Calculate the Herfindahl-Hirschman index. Calculate the four-firm concentration ratio.
Consider the following sequential game between firm 1 and firm 2. First, firm 1 decides to adopt either technology A or technology B. Firm 2 observes firm 1's decision and then also decides between technology A or technology B. Using the principle `l..
Suppose the Fed purchases $1,000 worth of Treasury bonds. Suppose also that the required reserve ratio is 10%. How much money will be created in the banking system?
Suppose that there is an increased confidence of the economy, shared among the economic agents: the representative consumer becomes optimistic of the economic performance and therefore, is willing to consume more, given his/her own income. determine ..
An insurance market consists of high-risk patients, who average $40,000 in spending per year, and low-risk patients, who average $1,000 per year. Overall, low-risk patients represent 90 percent of the population. What would average spending be for a ..
Whenever the amount of output produced is not as great as the amount that the economy is capable of producing, there is a positive GDP ___________ and cyclical unemployment will be the result.
Suppose a firm has a warehouse that they originally purchased for $500,000. They have a project that they determine would be acceptable if the costs for the warehouse were at most $1,500,000. The firm has determined the market price for the warehouse..
Consider Bob who only consumes donuts and coffee in fixed proportions. Bob consumes 2 donuts with each cup of coffee. Write down a utility function that is consistent with Bob's preferences. Graph the indifference curves from part a with coffee on th..
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