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Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, depreciation and obsolescence charges, sales taxes, and rental payments on leased office machinery. There are no fixed costs in the long run; all costs are variable.
If the government steps in to regulate a market, setting a price floor above the free market equilibrium price, will demand increase or decrease compared to the free marker equilibrium? Can you name any industries where the government sets price floo..
Transaction costs are inherent in the trade-off between risks and uncertainties. Propose how one can determine the efficient levels of information in an organization to justify taking risk over uncertainty.
In the early 1990's, a study found that moderate daily consumption of red wine reduced the incidence of heart disease in labratory rats. As a result of national press coverage of the report, the demand for red wine increased dramatically. Assume t..
Describe the total shortage associated with the price ceiling. Compute the full economic price. How much is the non-pecuniary price.
You are considering buying a new car with a part of your student loan dollars as you really do not need the extra cash now. You have two alternatives with the following cost structures. Speedy Initial cost = $20,000 Annual operating cost = $8,000 U..
The state of Maine has a very active lobster industry, whichharvests lobsters during the summer months. During the rest of theyear, lobsters can be obtained from other parts of the world but ata much higher price.
Explain why this strategy may in fact, be rational Also, identify at least two other strategies that might permit Argyle to earn higher profits.
Choose a current event that addresses one of the following economic concepts: a. Aggregate demand and supplyb. Keynesian Economicsc. Fiscal Macroeconomic Policy
Solve for the equilibrium price and quantity. Assume the price is expressed in dollars and the quantity is defined in 1,000's of units.
Assume an avatarian with no training can catch 1 turkey per month. How many turkeys per month can an avatarian with 5 years of training catch? With 8 years of training? With 10 years of training? With 15 years of training? (b) Assume there are 100..
Illustrate what are the three major categories of revenues for the federal government. Please comment on each and indicate their relative importance to each other.
Describe a policy that will promote education in the Middle East. Explain how this policy does or does not target incentives at the margin. If you would like to focus your answer, feel free to make a response that applies to specific regions..
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