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Abby quit her $50,000 per year job to start her own business. In the first year, her business received $200,000 in revenue, with thhe following costs: $100,000 in wages to her employees, $20,000 on miscellaneous materials used in her business, and $20,000 on electrical, gas, and water usage. Abby also used $50,000 of her personal savings to purchase equipment for her business. She was earning 10 percent interest on her savings. Assuming no depreciation in the value of the equipment, Abby's business earned an economic profit for the year of ______ .
Utilizing the midpoint formula, what is the price elasticity of demand for Coke at these prices. Assume the demand for Coke is a linear line. Would the elasticity of demand be elastic or inelastic at 75 cents a can.
Discuss conflict theory as a theory that society and its structural arrangements are organized and held together by the power and dominance of certain groups over others, based upon their greater economic,polotical and cultural resources. is this per..
Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).
it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
When managers determine their prices, they may not believe they have any options. While it’s true that firms in a competitive market have little room to maneuver, they may not recognize that pricing technology may allow them to find the profit-maximi..
The control function of the federal reserve system is divided into quantitative controls and qualitative controls. What is meant by the term "qualitative"?
Consider the characteristics of the U.S. health care market.
Should one distinguish between economist’s descriptive statements, propositions, and predictions about the world, and their statements about what policies should be adopted?
From the simple theory of profit maximization in oil production, it can be shown that the price (P) is related to marginal revenue (MR) through price elasticity of demand (E). Assume that the demand curve is linear and continuous, Revenue = PQ and th..
How should business managers cope with Business cycles? provide examples to elaborate how unemployment, inflation risk and moral hazards are the major problems in the business cycles.
Consider that two countries, Brazil and Argentina, have the same rates of investment, population growth, and depreciation. They also have the same levels of capital per worker.
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