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Indifference theory can explain all rational choices and behavior..Try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year, the price of "All other goods" is $1, and the couple has an annual income of $40,000, how would I construct a budget line for having a family?
a. List and fully describe the five stages of international development which a firm could consider or adopt when it decides to expand its operations outside its domestic market (s).
What is total variable cost when 100 units of output are produced and what is average fixed cost when 150 units of output are produced?
Compute the weighted average cost of capital using book value weights. Compute the weighted average cost of capital using market value weights. Compare the answers obtained in parts a and b. Describe the differences.
What factors would cause a firm to decide to buy intermediate products needed for production of its final goods or services?
On Sunday October 23rd, Eastern Turkey was hit by a strong earthquake. Analyze the effects of this temporary negative supply shock on the real output and real interest rates using an IS-LM model. b. Show the effect of this negative supply shock.
Calculate marginal pdf's of both variables and calculate the probability that Bobo has fun if Bobo studies economics.
Construct a numerical example to show that as marginal product (MP) rises, marginal cost (MC) falls. Explain your answer and use tables and graphs to illustrate.
Yolanda owns an art factory in Palermo, Italy. She is thinking of expanding her exports of large-size paintings of Italian cityscapes. She has had little difficulty recruiting new artists to Palermo to work a 40-hour week in the factory.
Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices
Explain the effects of the $26 a week increase in the minimum wage on the workers' surplus and the firms' surplus. Has the labour market become more efficient or less efficient? Explain and show the welfare measurement analysis in the graph.
Using demand and supply analysis, explain why this new process will not cause a surplus of crude oil. If no surplus is created, then what will be the impact of this process on the market for crude oil?
Southcoast Oil's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10.
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