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1. Many small businesses do not earn an economic profit. Why do they stay in business?
2. A firm is considering adding an addition to their factory. The firm will need to borrow the money at 7% interest. The investment will earn a 5% rate of return. Should the firm add the addition? Explain.
3. Are all fixed costs also sunk costs? Explain.
What are the characteristics that make Irelands international company different from domestic companies? Is this company successful? What makes this company a success or failure?
Assume that you borrow $15,000 for five years (annual payments) at a market rate of 5%. Assuming that inflation is 3.5%, what would the equivalent equal annual payment be in constant dollars?
A particular market structure has the following characteristics: the cross-price elasticity of the goods bought and sold in this market is +3.0, firms must lower price to sell more, and there is relatively easy entry into this market.
Illustrate what is the reason the productivity also real incomes of workers in the industrially advanced economies have risen historically partly.
What is the challenge of organization in international business? Why do managers increasingly worry about it? What trends drive current change?
Airline travel and train travel in Europe are substitute goods. Suppose the price of airline travel decreases. 1. Explain what happens to the demand curve for airline travel. The demand curve for airline travel would increase because
He explains that the firm that has come up with the idea decided to start the coffee push cart in either Cleveland, Ohio, or Houston.
If a company wants its promotion to appeal to a new group of target customers in a foreign country, how can it protect against its communications being misinterpreted?
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. What type of preferences is mike exhibiting? Are Carl's preferences monotonic? How do you kn..
Identify the risks related to information systems and suggest ways to minimize them.
What is the equal payment series for 10 years that is equivalent to a payment series starting with $30,000 at the end of the first year and decreasing by $3,000 each year over 10 years? interest is 8% compounded annually.
Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.
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