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In making a decision about whether to increase its advertising budget the firm management should not consider Answer the added revenue from increased sales the added cost of producing more goods for sale. interest payments on the firm's loan. the cost of increased advertising.
Should a country's income be distributed to its members according to their contributions to the members' requires? Should society attempt to equalize income/economic opportunities?
Let's assume that thereare no trade barriers and exchange rates are freely fluctuating. At the same time, the European Union develops a technology that reduces the cost of production for most of their exporting products. Explain what will happen ..
Suppose demand for the firms watches falls permanently to P = 20 - Q/20,000. In view of this fall in demand, what output should the firm produce in the short run? In the long run? Explain.
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..
This is in conflict with the world wide trend of globalization?
Assume that I am selling cans of beer to people on a beach. Since I am concerned about my income, I decide to sell beer in the following way.
Illustrate what happens if the government is trying to stimulate the economy with their spending, but this leads to a greater output than projected.
The consumption of which bar yields the greates marginal utility?The reason why people are charged for an additional can of soda they get from a soda machine, but are not charged for an additional paper taken from a newspaper dispensing machine, is..
Determine which is true of leakages and injections in the circular flow, the consumer price index measures changes in
Elucidate factors would you consider before investing in the emerging stock market of a developing country.
Lockheed Martin management is considering your proposal to purchase a new water jet machine for cutting 14 gauge aluminum sheets into C-130 fuselage parts. This is a much cleaner method than the current method of using an oxyacetylene cutting torc..
(1) Show that a profit maximizing monopolist equates marginal revenue in each market to the common marginal cost. (2) Derive mathematically the formulas for the price-elasticity of demand and for the income-elasticity of demand. Interpret both m..
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