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Two partners who own Progressive Business Solutions, which currently operates out of an office in a small town near Boston, just discovered a vacancy in an office building in downtown Boston. One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move. The other partner at PBS opposes moving downtown. He argues, "We have already paid for the office stationery, business cards, and a large sign that cannot be moved or sold. We have spent so much on our current office that we can't afford to waste this money by moving now." Evaluate the second partner's advice not to move downtown. Illustrate and fully explain using an example of relevant cost (a cost whose value does affect the optimal decision) and an example of irrelevant cost (a cost whose value does not affect the optimal decision) to the business regarding this decision.
In light of Ricardian model, how might you measure the claim by developing countries that they're at a disadvantage in trade
Suppose the economy is in the midst of a severe recession. Determine which of the following policies would be consistent with active fiscal policy?
A paper detailing explain why the US dollar might be replaced as the nation's reserve currency by the Euro or the IMF's Special Drawing Rights.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
The New York Times reports that Wal-Mart has decided to challenge Netflix and enter the online DVD by mail market. Because of economies of scale, Wal-Mart has a slight cost advantage relative to Netflix. Wal-Mart is considering the use of a limite..
Prepare a memo to the managing director that explains the different vehicles available that can be used for each of the Minimize income tax
Explain How did the resolution affect the short and long run costs of the firm. What are the lessons to be learned that can be applied to your position at Acme Motors in Nuevo Laredo.
Illustrate what does the report say about the corporation view of future business challenges and the market in which it operates.
After analyzing the cost savings of both India also China manufacture our GPS product and your explanations.
A popular magazine reports that wrist watches are becoming the highest fashion craze. What affect will this have on the demand for watches, and what will happen to the price and quantity of watches sold on the market
An automobile company is building a new factory in your town. what may be a positive externality of this event?
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
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