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A small firm builds galvanized swing sets. The investment in plant and equipment is $200,000. The variable cost per swing set is $500. The selling peice of the swing set is $1,000. How many swing sets would have to be sold for the firm to break even?
Suppose a town is interested in providing a public good, crime prevention, to a community. There are two people who live in this community Sam and Sara. Sam's demand curve for crime prevention is given by q(Sam)= 100-2p and Sara's demand for crime pr..
Suppose that Natasha's utility function is given by u(l) = I^0.5, where I represents annual income in thousands of dollars. Is Natasha risk loving, risk neutral, or risk averse? Explain, Draw a utility function over income u(I) tha describes a man wh..
A study is conducted and the people in the study, 43% of their annual income on housing. Which is a perimeter and which is a statistic?
In order to maximize utility subject to a budget constraint, consumers will:
The Case in Point on America’s shifting comparative advantage suggests that the United States may have a comparative advantage over other countries in the production of high-tech capital goods. What do you think might be the sources of this advantage..
Explain what Constitutional issues are raised with Wells Fargo and Disneyworld having access to customers’ fingerprint records. Who is the custodian of the fingerprint records and any rights the custodian maybe violating.
Most economists agree that markets do a good job of organizing trade, domestic and foreign. What conditions must a government provide for markets to survive and function efficiently?
Their costs and benefits are presented in the table below. Each project has a useful life of 50 years and the MARR is 12% per year. Which of the projects, if any, should be selected?
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Compute the price elasticity of demand for good X between the two prices on the demand curve. Describe the price elasticity of demand for good X.
A treasurer of a corporation is trying to choose between options and forward contracts to hedge the corporation’s foreign exchange risk. Discuss what options you would take if you were the treasurer. Discuss the advantages and disadvantages of each a..
Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying
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