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1. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, depreciation and obsolescence charges, sales taxes, and rental payments on leased office machinery. "There are no fixed costs in the long run; all costs are variable." Explain.
2. Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures?
Find the following equivalent amounts if the interest rate is 8% compounded annually.
Compute the average product of labor, APL, when the level of capital is fixed at 16 units and the firm uses 16 units of labor. How does the average product of labor change when the firm uses 81 units of labor.
Elucidate how the asset demand for money as a green line draw the transactions demand-for-money curve.
When working with tribal people, keep in mind that:
The General Manager wants to reduce the cost and time that scientists spend travelling between the four different countries, and hence wants there to be more focus on using virtual environments when they share their research with each other.
1. Would you continue to work for a company if you disagreed with the firm's system development mission statement? Why or Why not?
Suppose that after five years consumer spending doubles to 400. Explain how much do you believe will be the budget share of leisure.
It should come as no surprise to anyone in the working world, when is asserts that work relationships are listed as the number one stressor in just about every survey on stress that is given. Discuss the reasons for this, including personal examples ..
A company is considering buying a new piece of machinery. A 10% interest rate will be used in the computations. Two models of the machine are available. What will be the book value of Machine II after 3 years, based on double declining balance deprec..
The following is information from the national income accounts for a hypothetical country: Net exports? Government taxes minus transfers? Disposable personal income? Personal saving?
How is it that China has the 2nd highest GDP in the world and is in the 90th place on GDP per Capita in the world? Is GDP per capita, a decent measure for a country's standard of living, why or why not?
Alternative I require an initial investment of $20,000 and will yield a rate of 15% per year. Alternative C which requires a $30,000 investment will yield 20% per year. Which of the following statements is true about the rate of return on the $10,000..
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