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Do firms really calculate marginal cost and marginal revenue to find the profit-maximizing output? If you examine the accounting records of most small businesses, you will be hard pressed to find explicit calculations of marginal cost and marginal revenue. So, why do economists develop rather elaborate, formal models of profit maximization when no one seems to do what we say they do?
How would I compare also contrast McDonald's strategies in China with those of Wal-Mart in Mexico.
The car has a 20-gallon tank. What choice should you make if you expect to drive:
The text notes that, if demand reversal were the cause of the Leontief paradox, then labor would be relatively cheap in the United States. Explain the reasoning behind this statement.
What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
Define the wage premium as the ratio of skilled labor wage rate over unskilled labor wage rate,w1/w2. Suppose that z1=z2, What is the wage premium? Now suppose that z2 remains unchanged, but that z1 increases to a new value z1'=1.5z1. What is the ..
Social security faces a $5.3 trillion shortfall over the next 75 years, but a congressional report says the massive gap could be erased by increasing payroll taxes paid by both employees and employers from 6.2 percent to 7.3 percent and by raising th..
On Saturday, Chuck turns on the news and hears a report projecting that the price of gasoline is going to increase.
1. What are the perfect market assumptions? 2. Explain whether the following statements are true or false. In each case, provide justi?cation for your answer:
Demand" is best defined as the relationship between:
Farm workers in Oaks Farmville face a 1/198 probability of death at work and each of them receives a yearly wage of $61,000. Farm workers in Valley Farm face a 1/54 of death at work. Assume that both kinds of job require the same level of skills, eff..
The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using their microcomputer along with a commercial database management system (DBMS) to develop a __________. Now the company can rea..
The purpose of this assessment is to help you analyze the factors that lead to fluctuations in the oil prices. Assessment Description: Use a credible source to research oil prices. Based on your research, answer the following questions: Why is the pr..
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