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For each of the following costs, decide whether or not it is a fixed cost or a variable cost for the firm in the short-run. Provide a brief argument for your classification of the cost. a) A one-year lease on the building in which the building is located. b) Annual property taxes that are assessed on the value of the land the business owns. c) The cost of a necessary metal used in the production of the firm’s product. d) A 10-year-old metal stamping machine that has a useful life of 20 years in your business and is sufficient to produce any desired level of output for the firm. e) Sugar that the firm uses to make the cookies it sells.
Explain each of the four components of GDP. An individual has 10$ million on deposit in a financial institution drawing interest. That individual has no reason to fear inflation or recessions.
Between 1995 and 2000, the S&P 500 more than doubled as the U.s. experienced a technology-driven stock market boom. How does a stock market boom affect GDP? Your answer should include a discussion of the impact on relevant components of GDP.
In some states, mining for coal leaves large amounts of rubble, which poses flooding problems; causes land damage also is unsightly.
Home price escalation in the U.S. during 2005 fueled booms in:
Suppose the Herfindahl-Hirschman Index for the pulp and paper industry is 173 and the Herfindahl-Hirschman Index for the pharmaceutical industry is 446.3. What does this data suggest about the competitive landscape in the pulp and paper industry rela..
Identify three economic variables that create differences in market interest rates on assets and/or liabilities. (b) For most companies, are business loan interest rates lower than the interest rates on personal loans for most U.S. households
From one year to the next, a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK = 0.3 and aN = 0.7. How much did productivity contribute to economic growth..
Technological innovations will cause:
Tax bracket is defined directly from a gross income value, not from taxable income value? Business can not claim depreciation expenses on a property it is leasing. To have a higher NPV of an after-tax CFS, owners would always prefer higher depreciati..
If inflation falls from 5% to 3% to 1.3% it is sometimes called. Typically the government: If the nominal rate of interest is 8 percent and the inflation rate is 3 percent, then the real rate of interest is: The unemployment rate is the percent of t..
Empirical estimates of the price elasticity of demand suggest that the demand for household consumption of alcoholic beverages is
Describe what happens after the technological change. What happens to the wage in the long run? What happens to the population size in the long run?
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