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What are the advantages when a business chooses to self sourcing rather that hiring an outside source?
The present machine can be sold on the open market for $14000. The cost to remove the old machine is $2000. Which are the relevant costs for the old machine?
How might increasing the level of government transfers reduce the size of the economic pie? Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productiv..
Utility function of Inzaghi is given as u(x, y) = 2x2y. His income is $m, to spend onconsumption of x and y. Assume that price of y is 3 times the price of x, i.e. Py = 3Px. State the optimization problem for Inzaghi, including the constraints. Deter..
Your company just purchased 4 forklifts for their warehouse operations for a total of $115,000. They want to depreciate this personal property over a period of 8 years. Use the Double Declining Balance (DB) method to determine the book value at the e..
Describe the major elements of the Efficient Markets Hypothesis (EMH) theory that create dissention between the worlds of finance and academia in terms of its usefulness. Select a real-world scenario and explain how EMH is either 1) currently used, o..
Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related?
Keynes said it was the stock market crash of October, 1929 that was the trigger mechanism for the Great Contraction from 1929 to 1933. He believed that the crash caused expectations to become catastrophically pessimistic. Use the Keynesian Cross Mode..
Economic Projections You have just been appointed the new Economic Advisor to the U.S. Government and have been asked to develop an economic series of projections for the U.S. domestic economy for the next year. Outline your new forecast based on cur..
Say a consumer is choosing between red wine and white wine. The price of red wine is 20 and the price of white wine is 10. If the marginal rate of substitution is 1, and if red wine is on the horizontal axis then the consumer is purchasing:
If this industry acts like a monopolist in the determination of price and output, compute the profit-maximizing level of price and output
How would you describe in factor notation the present worth of a cash flow that gives you $10 in periods zero through 20, then in period 21 gives you $8, in period 22 gives $6, and so on, until period 24 when you recieve $2.
The welfare system provides income for people who are very poor, with low incomes and few assets. If a recipient of welfare payments decides to work and earn some money, the amount he or she receives in welfare payments is reduced. a. How does the ex..
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