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The Shout Soap Company's annual revenues will be $320,000 for 15 years from its new soap, Rub-AD ub-Dub. The soap requires an initial investment of $900,000. The annual expenses of manufacturing and selling the soap equal $73,500. Determine the EAW if the interest rate is 15%.
Explain the relationship between price, short-run marginal cost, short-run average cost and long-run average cost in the final long-run competitive equilibrium condition. What are economic profits in this long-run equilibrium condition?
Time to get real--real world, that is. Drop the following articles into your smart phone or bookmark them on your computer and read them over the week. Post a comment on one of them or add another link to something relevant. Thoughtful people all ove..
Nantucket Hammocks, Inc., uses dealer incentives, discounts, and sales contests in order to encourage retailers to give special attention to selling its products. Nantucket Hammocks is using
Suppose that Victoria and her friends are running a fundraiser by selling donuts. They want to know what will happen to their revenue if they increase the price of each donut from $0.80 to $1. What concept do they need to apply to find out their expe..
The Governor of Arkansas has asked you (her crack economic advisor) to analyze how employment in trucking and poultry processing will be affected if the legislature passes a proposed law that will increase labor cost in both industries by ten percent..
Comparative advantage of each country. the range of relative wage between country A and B:WA/(WB*E). Labor hours required to produce S or T in country A and B: Suppose that there are 20,000 hours of labor available in country A, and that 5 hours of l..
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They purchased their home 11 years ago for $74,102. The home was financed by paying 15% down and signing a 30-year..
Describe the major components of a business model. Which component do you identify as the foundation component? Why?
Transparency International's Corruption Perceptions Index (CPI) is a comparative assessment of a country's integrity performance. Provide a brief analysis (not a description) of this index and its ranking using concepts from the readings and lectures..
A portfolio consists of two assets A and B. Their respective mean returns are E(RA) = 15% and E(RB) = 10%. Their variances are σ 2 A = 81 and σ 2 B = 49. Sixty per cent of the portfolio consist of asset A. (a) Assuming Cov(RA, RB) = −50, calculate th..
Your HR Manager comes to you about an employee whose performance reviews have been declining recently, and asks your advice.
illustrate the effects of capital formation by comparing the production possiblility curves at the present time and ten years in the future.
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