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Q1. What would be the production possibility frontiers for Brazil and the United States? Without trade, the United States produces 45,000 units of clothing and 150,000 cans of soda.
Q2. A. Use the following information to calculate the value of the firm. Interest 15% and the firm is expected to grow at an annual rate of 7% (assume growth rate is constant) If the current profits of the firm are $150 million. Why is it important to discount future profits?b. Define and explain the four types of efficiencies. What role do they play in decision making?
Q3. Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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