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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. Respond to at least two of your fellow students' postings.
Suppose firms compete in quantities. How much does each firm sell in Cournot equilibrium.
Compute most favorable output also profit for each firm and the market price. Also, compute the resulting profit of cartel.
Derive the total supply function of X for the industry assuming that the industry operated under perfect competition.
Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.
Compare social welfare under the bribe with social welfare in the case where the police officer always abides by the law.
The ABC Bank of Bermuda has outstanding checkable deposits of $300,000 also a reserve ratio of 10%. If it has excess reserves of $15,000, illustrate what is the size of the bank's actual reserves.
To make your work easier to grade, please make Julie the row player, Kristin the column player also Larissa the page player.
Illustrate what are the values of public saving,national saving and private saving.
All farmers in Trivialand are self - employed and sell all of their wares to Super Duper. Elucidate the costs incurred by all of Trivialand's busines.
what is the short run equilibrium level of output in this economy.
Explain what you think of an alternative way to restructure the compensation of EFT's sales force that could potentially enhance profits.
List out three problems of decentralized power that existed under the articles of Confederation . For Each problem you listed, identify one solution that the Constitution provided to adress the problem.
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