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Question: A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all of the executive decisions. Under the agreement you hold 30 percent of the firm's stock and your friend holds 70 percent. Why should you ever put yourself into a position where your friend's decision will carry the day, whether you agree with her or not? What does this tell you about problems that allegedly stem from separation of ownership and control?
After months of negotiations, the two sides signed a three-year contract that sets the wage rate at $7.25 an hour.
The BIG Ideas Assume that demand for pizza has been steady for some time. How do you think the market demand curve for pizza would be affected.
We used the phrase "rules for clear thinking" to refer to the axioms described in this chapter. However, these "rules" do not cover every aspect of decision.
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $25,000 and replaced by a newer model.
provide an example of a product you have recently purchased in which the price changed. determine whether the good was
Which of the following events would most probable cause the nominal interest rate to fall? Which period in U.S. economic history was not characterized with inflation? If the aggregate supply curve shifts leftward, Gauged unemployment includes discour..
What are profits if the firm chooses the profit-maximizing price and what are profits if the firm chooses a penetration price equal to marginal cost?
Suppose the state of California needs to increase tax revenue. The government is considering raising the per-unit tax on consumption good in order to generate more tax revenue.
These multiple choice questions belong to Economics. The first question is about decreasing cost industry and the second question is about finding true or false for a statement about utilities being considered natural monopolies.
In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real compa..
Calculate the MRS or the marginal rate of substitution between X and Y. How much X and Y will Sam buy to maximize his utility given his budget constraint and the prices of X and Y?
Suppose a fiscal stimulus package that called for a large increase in government spending actually increases governments’ budget deficit dramatically
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