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1. A company offers package delivery. It is considering expanding its facilities. It currently has fixed costs of $5 million per month and its variable costs are $4 per package. It charges $5 per package and has a monthly volume of 10 million packages. If it expands, its fixed costs per month will double and its variable costs per package will be half as much as before.Should the company expand?
2. Joe quits his computer programming job, where he was earning a salary of $100,000 per year, to start his own computer software business in a building that he owns and was renting out for $25,000 per year. In his first year of business he had the following expenses: rent $0 and other expenses, $50.000. What are the accounting profits and the economic profits associated with Joe's computer software business?
Global outsourcing has cost the U.S. economy far more than one million jobs since 2001, or somewhere between 15 and 35 percent of the total decline in employment since the onset of the 2001 recession. What will it likely do to lawyers' wages? How doe..
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Evaluate the price falls all of these firms will be unable to stay in business and the industry will disappear by using a graph.
How currency crisis exacerbate sovereign debt crisis and how a recession exacerbate banking crisis?
Calculate the price and quantity associated with the perfectly competitive outcome.
Suppose we have an economy of four people. One very rich person makes $100,000 per year, while three (relatively) poor people make $20,000. Suppose the rich person has an MPC of 0.2, and the poor have MPC’s of 0.8. Assess the following statement: If ..
Analyze the impact of recent (2019-2021) events (e.g. COVID pandemic) on the trade of Germany using concepts and graphs studied in the International Trade cours
The following events have their initial impact on which of the following:aggregate demand, short-run aggregate supply, long-run aggregate supply, or bothshort-run and long-run aggregate supply? Do the curves shift to the right or left? Explain AND su..
Remember: The elasticity of a product, whether in the supply or demand sector, is determined by how sensitive the product is to a change in price.
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
Assume that there are two sectors, manufacturing and farming. There are three productive factors, labor, capital and land.
Jaguar Private Limited Company is engaged in the production of power transformers. Currently, the management team of the company is trying to decide whether to
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