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Explain how the listed events, a) to d), would affect the following at the Ford Motor Company [make sure you explain and justify your answer):
i. marginal cost
ii. average variable cost
iii. average ?xed cost
iv. average total cost
a. Ford signs a new contract with the unions that requires the company to pay higher wages.
b. The federal government starts to levy a $1,500 per vehicle tax on new cars
c. The company decides to give its senior executives a one-time $100,000 bonus. cl. Ford decides to increase the amount it spends on designing new car models.
Each of the following will shift the AE Curve for the U.S. except: an improvement in technology of semiconductor chips that increases efficiency and profit opportunities.
Using the Mundell-Fleming diagram, explain what is meant by effective policy instrument choice, being careful to identify clearly the critical elements of the diagram. Why is the EB curve postulated to be more interest-elastic than the IB curve? In w..
Suppose that you borrowed $25,000 from a bank at a monthly interest rate of 2% compounded monthly to purchase a car. This loan is to be repaid in 24 equal monthly installments over two years. How much is the monthly installment? What would be the mon..
When the US. Treasury sells bonds, the money supply does not increase, while when the Central Bank sells bonds, the money supply contracts. Explain why?
Tommy DesDain is the sales representative for the Holiday Zoo. He sells events, such as wedding receptions, corporate dinners, and fundraisers that are held on zoo grounds. Tommy has just finished negotiating all the details of Carole Madison’s upcom..
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase any and all units consumers do not buy at the floor price of $36 per unit
Identify three changes that American society is undergoing, and discuss how those changes are reflected in schools? How can you as a teacher become better prepared for the cross-cultural differences that you are certain to encounter among students? H..
Complete this statement by filling in the blanks with the words "increase" or "decrease": The entry of an additional firm in a mon. comp. market _____________ the profit per unit of output because entry ________ the price and ____________ the average..
Explain why globalization is good for the United States. What are the drawbacks of globalization for our economy? We run huge trade imbalances with two countries. Explain the cause of the imbalances. What is the economist's case for free trade?
Market that gives auctions, request for quote postings, and other features to firms that want to operate their own marketplace.
Which of the following statements about indifference curves is true
Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $30,000 and $45,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. ..
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