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A bank recently announced an "instant cash" plan for holders of its bank credit cards. A cardholder may receive cash from the bank up to a preset limit (about $500). There is a special charge of 4% made at the time the "instant cash" is sent to the cardholders. The debt may be repaid in monthly installments. Each month the bank charges 11/2% on the unpaid balance. The monthly payment, including interest, may be as little as $10. Thus, for $150 of "instant cash," an initial charge of $6 is made and addedto the balance due. Assume the cardholder makes a monthly payment of $10 (this includes both principal and interest). How many months are required to repay the debt? If your answer includes a fraction of a month, round up to the next month.
Elucidate how the necessity of a good and the availability of substitutes impact the price elasticity of the product. The product is beef.
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Discuss your opinion regarding whether unions are still relevant and necessary in today’s work environment. What other means might be used to ensure ‘‘employee voice’’ in the workplace?
Over the past year the Texas Legislature along with others around the country have sought to change history books to downplay the negative aspects and promote the positive aspects of American History. Should college history classes be "washed" of the..
Describe a market situation in which the operating company faces economic difficulties and the need to cut costs. What cost cutting strategies might the operating company use to remain profitable? What would be the benefits and drawbacks of each?
The 10 economic forecasters of a random sample were asked to forecast the rate of growth of the real gross national product (GNP) for the coming year. Suppose the probability distribution of the r.v.—forecast—is normal. The probability is 0.10 that t..
You have just invested a one-time amount of $5,000 in a stock-based mutual fund. This fund should earn (on average) 9% per year over a long period of time. How much will your investment be worth in 35 years?
Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. Explain how sellers' costs, producer surplus, and the supply curve are related.
You are the human resources manager for a famous retailer, and you are trying to convince the president of the company to change the structure of employee compensation. Currently, the company's retail sales staff is paid a flat hourly wage of $20 per..
A company decides to invest in a technology that costs $50,000. The technology, which has a life of 10 years, is expected to save the company $10,000 the first year. The benefits (savings) from the technology decreases by a fixed amount, G, each year..
You operate a small but popular and profitable restaurant/bar in a college town. There are several other restaurants and bars nearby. Discuss at least two pricing strategies you can use to increase your revenues and analyze them in terms of their abi..
Suppose there is an increase in the saving rate. This increase in the saving rate will cause an increase in which of the following once the economy reaches its new steady state equilibrium?
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