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Assignment:
TOPIC "Sunk Cost"
Your company has invested $5 million in developing a new product, but the development process isn't quite complete. You have just learned from your marketing team that other companies have introduced similar products. As a result of this competition, the expected sales of your new product once you have completed development and actually begun production is now just $3 million. Your production team tells you that it will cost another $1 million to finish development and make your product. The decision is now yours: should you give the go-ahead to complete the development of the product? Why or why not? In the event that your production team's cost estimate is inaccurate, what is the most that your company should pay to complete development? Why? Be sure to incorporate (and define) the relevant concept into your answer.
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Compare the economies of India and China today. What are their GDP per capita and their economic growth rates? What has caused the rapid expansion of Chines.
Graph a market with a tax where firms pay the majority of the tax. Graph the long run equilibrium for perfect competition. Using a similar average cost curve, graph the long run equilibrium for monopolistic competition. Compare the results.
An investor has $20,000 to invest. He has two investment opportunities; one relatively low risk with 3 % return, and another relatively high risk with 5 % return. Use matrix formulation and determine the amount he should invest at each rate in ord..
With a high and growing US trade deficit, many hope that a depreciation of the dollar would help close the deficit. Explain the logic behind this prediction.
Given the existence of the spot market, how much capacity should the manufacturer reserve with the supplier when the contract is signed in February?
Explain your view, connecting it to positive and negative characteristics of two market forms.
When decentralized governmental units operate independently and compete with each other, governments will attract residents and expand their tax base when
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