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Suppose there is an increase in the monthly fire insurance premium that department stores have to pay. Assume that department stores are a competitive industry.
A. In the short-run, will the prices of goods sold at department stores increase or remain unchanged? (Explain your answer using cost curves for the individual firm, and supply and demand curves for the industry.)
B. In the long-run, how will the prices of goods sold at department stores change? (Explain your answer using cost curves for the individual firm, and supply and demand curves for the industry.)
Why is the private market for public goods typically characterized by under provision. Under what situations will we expect the private market to overcome this problem?
How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?
You are responsible for the manufacturing budget preparation. What other forecast or budget/s affects the raw materials budget and in what way? How would a growth in the sales forecast affect the raw materials budget?
What happens if the FOMC members DISAGREE on what to do with Monetary Policy? How is a compromise or resolution reached?
Mr. Sansome withdrew &1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock for $1207. In the savings account, he would have received an interest rate of 3%, compounded quarterly. He would like to compu..
Consider a new per-worker employment tax on workers (where previously there was no tax). Outline the consequences of this tax on the local labor market. Use appropriate, clear, and well-labeled diagrams. In your answer show (1) the burden of the tax ..
Hospitals are engaged in intense competition to fill maternity beds. What type of advertising would hospitals most likely use to advertise their new amenities like hot tubs in every room, filet mignon or lobster on the menu, and afternoon teas for th..
At present, the original manufacturer is deciding either they should continue production of toy truck.
You've just won the state lottery and will receive 20 annual payments of $70,000, with the first payment arriving 1 year from today. It is easy for you to borrow or lend on the capital market at an interest rate of 8% per year. If someone offered to ..
Make a business plan of a mini golf, with actual real numbers and information, like i was going to build one
The Acmeville Metropolitan Bus Service currently charges $0.67 for an all-day ticket, and is used by an average of 513 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of..
Consider a homogeneous good market with the following market demand curve: Q = 8 − p, 0 ≤ p ≤ 8 = 0, p > 8. Two firms produce output at constant marginal cost which may be different. Derive the Nash equilibrium outcome and the profits of the two firm..
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