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How is an earnings-at-risk plan different from an ordinary gain-sharing or profit-sharing plan? How might earinings-at-risk plans affect attraction and retention of employees?
Suppose you own a specialized auto parts manufacturer. You purchase and have installed a new machine to make a particular type of part. The price of the machine plus installation is $300,000. If you have already purchased the machine, should you go a..
A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero..
A heating-oil distributor blends two grades of heating oil (regular and non toxic) from three products (called distillates 1, 2, and 3) produced in the crude-oil refining process. The distillates are purchased from a local refinery. We assume that a ..
If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and 108 this year. What is this year’s rate of inflation? What term do economics use to describe this second..
After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pri..
Should the United States pull out of NAFTA? Explain why we should or why we should not. A group at your school has called a meeting to discuss a boycott of the college bookstore if it continues selling clothing made with sweatshop labor. Would you su..
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
A manufacturing company leases a machine for $31,000 per year. Each unit produced costs $36 in labor and $65 in materials. To break even, 21,000 units must be sold. What is the price of the product?
Seller surplus is _________.
However, the university administration will charge the college $10,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments.
Think of an externality in your community. Explain what type of externality it is. How can it be resolved (through the market and/or through government policies)?"
Compute an appropriate measure of association also decide how to present the results.How might this information involve the advertising approach.
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