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Outdoor Sports Company, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45% chance of occurring, Outdoor can expect to earn a net income in that branch office of $50,000. If there is a mini-recession, which has a 25% chance of occurring, Outdoor will earn $20,000 in that branch office. In a severe recession, which has a 20% chance of occurring, Outdoor will lose $10,000 in the branch office. There is also a slight chance (10%) that the branch office will be a failure and Outdoor will lose $300,000. Should Outdoor open the branch office?
Illustrate what were some of the major contributing factors and how did they combine to cause the recession. How were you affected by it.
A lawyer who runs a beat up car also wears frumpy clothes may have a hard time getting clients. Potential clients may conclude from his appearance that he is poor, and if he is poor, he probably is not very good.
Using the exchange rates and prices in the tables above:
Illustrate what the pricing and non pricing strategies that firms rely on to compete in monopolistic competition and oligopoly market models.
Explain why is the marginal cost of inputs more important than the average cost of inputs.
Describe the current status of Real GDP and unemployment rate and inflation rate.
Decide what sports were like NFL before the introduction of the salary cap?
Describe the extent to that you believe these three measures are related.
Are they required to ensure economic growth and a prosperous country.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
Illustrate what do you think would be the effect of Increases/decreases in the dollar's exchange value on the firm's profitability.
Explain why user cost, or scarcity rent, arises in the intertemporal allocation of a depletable resource such as minerals, and some types of energy and aquifer water resources.
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