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Consider the following conversation:
G: “I hate this book we’re reading for book club.”
D: “Why don’t you just give up and read something else?”
G: “I’ve got to keep going, I’m three quarters of the way through already.”
Does the logic of the reader (G) make any sense, or does it violate economic reasoning?
Mr. Roe gave up a job paying $18,000 and investments paying $6000 a year to pen this business. What is his accounting profit and what is his economic profit?
What are the studies that control for changes in technology, capital availability and perhaps other factors and quantify the impact of merger control on economy-wide market structure/concentration measures?
A house costing $100,000 can be financed with two alternatives: A. $80,000, 15 yr, 11.5%, 1pt. B. $90,000, 20 yr, 12%, 2pts. If the house will be sold in 18 years, use the Incremental borrowing cost to find a. real cost of additional $10,000 loan pro..
Why does the government intervene in the economy? Should they and what would the impact be if they did not?
“If the assumptions of the median voter model hold, then using majority voting to determine the amount of a public good purchased by a city will lead to either an efficient level of the public good being provided or an under-provision of the public g..
Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%, and its debt increases from 40% of total assets to 60%. Under these conditions, the ROE will decrease.
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land (a fixed cost) and half is the cost of labor and machines (a variable cost). In the short run, the farmer should shut down because he is maki..
Illustrate what is the most effective process of decreasing the quantity of drugs consumed and decreasing the amount of drug-related crime.
Suppose in Fiscalville there is a 0 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 45 percent. ..
Which region appears to have a comparative advantage in producing cut flowers: Colombia or California? Explain. How have U.S. consumers of cut flowers been affected by the cutback in Colombian imports?
Review Porter's 4 competitive strategies and give a real-life company example of which strategy a company is pursuing.
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