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For the world's market economies, ________ over the past 50 years. a. international lending has declined gradually b. foreign investment has increased significantly c. exports and imports as a share of national output have remained virtually the same d. economic interdependence has decreased substantially
A manufacturer of aerospace products acquired a new multispindle, multi-turret turning center for $250,000. The machine will generate new revenue of $80,000 per year. Operating costs for the machine will average $10,000 per year. The company uses an ..
Principal-agent problems:
Briefly point out the faulty reasoning in each of the following situations: You win a free, nontransferable ticket to a Sheryl Crow concert. Since the ticket is free and it will therefore cost you nothing to go, you decide to go to the concert.
Discuss what non Enron professionals could have done to prevent the collapse of Enron?
A monopolist is selling the same product in two different markets, the West Coast and the East Coast. The demand for the product is larger in the West Coast: Demand in the East Coast: P =10 - Q Demand in the West Coast: P = 20 - Q. What price would t..
q1. given the choice between a1000 p 1.0 and b1200 p0.90 kathy prefers gamble a. does this mean she is risk averse?
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase German products, does our demand for euro go up or down? What ..
In class we built a Production Possibility Frontier (PPF) where each sector exhibits constant returns to scale technology and where sectors use die rent capital-labor ratio. Suppose now that both sectors exhibit increasing returns to scale. Build the..
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
Define inference and assumption, and then explain the relationship between the two. Provide two examples of inferences that you made from assumptions that you have.
What could Massey Energy have done to avoid this tragedy? The company had a long history of being cited for safety violations. Why might a company persist with flouting violations? To what extent did Massey Energy’s organizational culture contribute ..
The truck's market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only two years, what is the annual worth of this investment? The MARR=18% per year.
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