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A sports store puts designs 12 different designs on sweat shirts. Setup between each design takes an hour and costs $18,000. Once setup, at a cost of $8,000 they can produce 1,000 units. Does this production exhibit scale economies or scope economies? Please show the appropriate rationale modeling you use. (Need a detailed explanation, please.)
Changes in the federal funds interest rate often lead to similar changes in the prime interest rate (i.e. the short-term interest rate banks charge their best business loan customers). Indicate whether this statement is TRUE or FALSE; and then provid..
What is the logic behind Zara’s decision to manufacture some items in-house whereas outsourcing other items? How does this decision contribute to Zara’s capability to adapt to changing consumer demand during the season? Why are the most fashion-sensi..
Limited partnership arrangements alleviate which traditional problem associated with real estate investments.
Cutting the corporate income tax can potentially increase the pace of technological change resulting in the aggregate supply curve shifting to the right.
Despite this finding, the government mandates that new cars have air bags, rather than taxing their use. Is this policy a contradiction.
Suppose that two people, Mary and John each live alone in an isolated region. y each have same resources available and y grow corn and raise pigs. What is John' opportunity cost of producing corn.
When the price of natural gas is 3.71 per mcf, an average household uses 4.67 mcf. When the price of natural gas is 4.58, an average household uses 3.52 mcf. Calculate the intercept of the linear function that describes this relationship. The price o..
Changes in tastes reduce the demand for wheat substantially. What happens to price and output in the market for wheat? What happens to the price, output, and profits of the individual wheat farmer in the short run? Illustrate with diagrams.
An appliance manufacturer produces two models of microwave ovens: H and W. Both models require fabrication and assembly work; each H uses four hours of fabrication and two hours of assembly, and each W uses two hours of fabrication and six hours of a..
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket..
Keynesians would likely agree that: A. all unemployment is frictional unemployment. B. if a person isn't working, that's his or her own choice. C. structural and cyclical unemployment are more common than frictional unemployment. D. unemployment is i..
Which of the following is NOT a characteristic of a perfectly competitive market? Recall the Application called "Wireless Women in Pakistan." What makes the wireless telephone market in the US NOT perfectly competitive? How do entry costs affect the ..
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