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You’ve recently learned that the company where you work is being sold for $275,000. The company’s income statement indicates current profits of $10,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” indefinitely and that the interest rate will remain constant at 10 percent, at what constant rate does the owner believe that profits will grow?
Economic theory unambiguously predicts that total employment will be reduced when an effective minimum wage law is introduced.
Why is consumer surplus never negative? What is consumer surplus? Consider a market with a demand curve of P=24-2Q and a supply curve of P=3+Q. Calculate equilibrium quantity. Consider a market with a demand curve of P=24-2Q and a supply curve of P=3..
Why do nations care about having outlets to the ocean? Are landlocked nations at a disadvantage? What are geographers and economists saying about this? Could there be different views on this issue?
The demand function for a particular brand of LCD TV is given by p=2800-35x where p is the price per unit in dollars when x thousand television sets are sold. Determine the number of sets that must be sold in order to maximize the revenue.
The graph also shows the marginal revenue curve faced by this firm. Hypothetical cost and revenue curves for a computer producer. Explain how many computers will the monopolist sell to maximize profits.
Consider the causes of the deficits also surpluses also provide your own insight as to whether these surpluses or deficits have a "positive" or "negative" effect on our economy.
The color copy machine market is dominated by a large firm with significant production capacity. The market demand for color copy machines is: Q = 4300 - 5 P The dominant firm has projected the supply by the small firms in the market to be: Qs = - 70..
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 35,000 bottles of wine were sold every week at a price of $7 per bottle. After the tax, 30,000 bottles of wine are sold every week; consumers pay $9 per bottle, ..
At what point should the government intervene in the delivery of health care (other than Medicare and Medicaid)? Should this intervention be at a state level or a federal level? Why? Provide at least two examples of when the government should become ..
Which of the following statements uses economic vocabulary correctly?
Explain why standardised products are desirable for international companies, and the circumstances that are likely to prevent its implementation?
A building is expected to generate no cash flows for several years and then generate annual cash flows forever. What is the value of the building if the first annual cash flow is expected in 6 years from today, the first annual cash flow is expected ..
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