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Think of the business you are currently in, or even dream about the business you would like to start. Identify/discuss the fixed costs, variable costs, and the implicit costs in that business. Please explain in detail.
Mr Smith has saved $1800 each year for 20 years. A year after the saving period ended, Mr Smith withdrew $7500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5000 per year. In the eighth year, he decided to withd..
Over the past decade, medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity..
A trucking company computes depreciation on its vehicles by a mileage basis. Suppose a delivery truck has a cost of $20,000, a salvage value of $2,000, and an estimated useful life of 200,000 miles. Determine the depreciation rate per mile.
Describe the effects of an increase in the tax on labor income.
The opportunity cost of holding money is
Insurance Consider a risk avers agent who owns an asset worth 100 USD. The agent can choose one of two actions: being cautious a1 or being negligent (a0). The agent’s payoff from having wealth w and taking action a is given by u(w_1,a_0 )=√x and u(w_..
Is Cable & Wire liable to Earthbound Resources under the contract? Is Becca liable? In each case, if so, why? If not, why not??
Is there any range of production characterized by scale of economies. At Illustrate what production level are scale economies exhausted.
Consider an economy described by the production function: Y = F (K, L ) = K1/2L1/2 where the depreciation rate is δ and the population growth rate is n. Find the per worker production function. Find the steady-state capital stock per worker as a func..
Mary Carey, a clever 3360 student, has borrowed $125,000 at 8% from her parents. She is asking Dragon Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. If they both agree, what is Mary's before-t..
Identify an example in which a firm you are familiar with made a strategic decision that was focused on improving the organization's profitability. How did the market structure in which the firm competes affect the firm's decision-making? If the mark..
In this problem we will find the labor demand and labor supply for an economy, from there we will determine the equilibrium quantity of labor, and by plugging that into the production function we will find GDP. Now find the labor supply for both the ..
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