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Explain the link between factor productivity and variable costs. Use the example of labour productivity to illustrate the following:
Can we draw any conclusions about marginal productivity and costs from the shape of their associated average curves?
Labor is expected to increase by 5% and the interest rate is 10%. What is the maximum amount you could spend on the device?
Welfare Economics: main economic goals of a political-economic system are to promote efficiency (static and dynamic), equity, and macroeconomic stability. Under what conditions will a free market meet these goals? Identify a violation of these condit..
You own a portfolio that has $3,200 invested in Stock A and $4,300 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent, respectively. What is the expected return on the portfolio?
If market participants expect higher inflation in the future, the quantity of loanable funds demanded will increase. This will cause a movement along the demand function for loanable funds. If credit risk increases, supply of loanable funds will shif..
Assume that quantity produced = quantity demanded = quantity sold. Peter Neutron is the manager of a MailMax store which provides services such as copying, scanning, and faxing in a small university town. Create a profit model for each Machine – use ..
What are some of the location-specific advantages found in agglomeration, the clustering of economic activities in a concentrated area? What are the advantages and disadvantages for first movers? What are the advantages and disadvantages for late mov..
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
A project has cash flows of -$12,000 in Year 1, +$5000 in Years 2 and 3, -$2000 in Year 4, and +$6000 in Years 5 and 6. Find the interest rate of 12%. Find the interest rate that gives a net present value of zero.
In regards to CANADA explain the importance of international economic policy coordination for the world’s financial system AND identify the problems confronting international economic policy coordination
A car dealer is offering to a buyer one of two incentives: zero percent financing or $3,000 cash back. If the car price (before the incentives) is $25,000, find the following to compare the two options in terms of monthly payments. Financing through ..
James earned $10,000 in income in his new job in Nova Scotia after the move and his employer paid him $1,000 specifically to cover the cost of the move, but doesn't specify what it can be used for.
Peanut butter and jelly are complements. If a tax is imposed on peanut butter, how will that affect the market for jelly?
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