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Frank owns a soda fountain and sells milkshakes. he sells 50 milkshakes per day for $5 each. his daily cost is $290, of which $30 is fixed cost.
What can you say about Franks short run decision regarding shut down and his long run decision regarding exit?
Joe won a lottery jackpot that will pay him $12,000 every year for the next ten years. If the market interest rates are currently 12 percent,
In March of year 2020, the Performance Marketing Company begins construction on a new warehouse.. This warehouse operation will be the only business activity of this new company (thus this is a small company with no other taxable income besides th..
Explain how do these tools influence the money supply, and in turn, affect macroeconomic factors.
Suppose that GDP is 5,000. Consumption is C=1,000+.3(Y-T). Investment is I=1500-50r, where r is the real interest rate. Taxes are 1,000 and government expenditures are 1,500.
Some politicians in countries that are the recipients of large numbers of immigrants advocate adopting laws requiring immigrants to learn the local language within a specified period of time.
Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25, 000 if the boat is a total loss. If the boat is not a total loss but the damage is more than $10,000, the policy pa..
Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output-How does this tax affect the firm's fixed, marginal, and average costs?
You are a member of the Metropolitan Taxi Commission, which sets taxi fares for your city. You have been told that long lines of taxis form at the airport during off peak hours. At peak hours, on the other hand, few taxis are available and long li..
As in the case of oligopoly markets, rivals may select to compete aggressively, non-aggressively or in non-price dimensions.
The following table contains 3-hypothetical public assistance plans. Calculate the minimum income, the benefit- reduction rate, and the break-even income for each plan.
Assume a typical customer’s inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q.
Compute the employment rate (i.e., number employed: population) in each year? How can employment rate may go up or down in the unemployment rate stays the same? How can employment rate go up if unemployment rate also goes up?
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