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You work for a manufacturer that in the past year has grown from a firm that operates a single factory to two factories. The chief operating officer of the company collects data on production and costs, and the numbers say that as long as the firm produces at least 1,000 units per month, the average cost of production is always lower when both factories are in operation than when the firm only uses one factory. Based on this information, some members of your company's management team want to take out a loan to build three more factories. The thinking is that the firm can continue to drive down average cost as it expands the number of factories it operates, driving up profits. What might be problematic about this plan?
Briefly explain what a government deficit is and then outline the methods the government has available to it for financing government spending programs. What effect on the monetary base do these government deficit financing options have on the mo..
Explain how do the types of economics systems capitalism , socialism, and communism fall under : market , tradition, and command.
Explain how each of the following would cause the yield curve to shift if between now and next year:
If $2,000 is invested now, $2,500 two years from now, and $3,000 four years from now at an interest rate of 6% compounded annually, what will be the total amount in 10 years?
There are two goods in the economy, anchovies, (a fish) and bananas (a farm product). Draw the economic possibilities before and after a natural disaster that lowers the banana harvest but does not affect anchovies.
Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level? Defend your position using economic principles. The response to this question is not as straightforward as it might seem. Consider the poverty ..
For this project, you should work with the monthly time series of the assigned commodity prices, spanning from January of 1995 to December of 2015. Calculate real prices from the obtained nominal prices, using U.S. producer price index as a defla..
Are those millions of other corporations, sole proprietorships, and partnerships outside of big business fairly insignificant to the U.S. economy then? If not, then what is the importance of these smaller companies to the national economy?
The government uses policies like student loans and free trade to influence economy's incremental rate.
The Internet boom of late 1990s was hailed as the four advent of a new economy: that would radically alter the face of business companies. By 2002, however, it was clear that new economy had not arrived on schedule.
i) Explain how this arrangement help to deal with the problem of moral hazard? ii) Explain how this arrangement help to deal with the problem of adverse selection?
Explain how is the aggregate supply curve different from the supply curve for a single good like pizza.
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