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Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since its sales account managers are very independent and maintain separate record keeping systems.
Should the CEO at Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why?
What can you say about the level of the real interest rate if people instead are risk averse.
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
When one person saves, that person's wealth is increased, meaning that he or she can consume more in future. But when everyone saves, everyone's income falls, meaning that everyone must consume less today. Explain this seeming contradiction.
Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.
Outline the methodology of studying economics also utilize examples in your conversion.
people who want to borrow to finance their investment spending. How are savers and borrowers brought together.
Consider a mutual fund with $720 million in assets at the start of the year and with 10 million shares outstanding.
Would a typical hedger be willing to pay a risk premium in order to hedge by buying foreign currency forward.
The research department of Wilson has discovered a new technology on how to make more durable tennis balls and is considering whether or not to adopt the new technique.
Also during that first year, the cookie business incurred costs that required outlays of money amounting to $9,000. What was Zach's economic profit (loss) for the year.
What is the firm's profit-maximizing (or loss minimizing) output (Q) level? What is the amount of its economic profits (or losses) at this output level? What would be the firm's decision at this price/output level?
Suppose that C (q) = 10q + 3,500,000 (for which MC (q) = 10 ). Use Inverse Elasticity Pricing Rule in order to determine profit maximizing price and level of output for this firm. Is this firm able to earn a positive profit.
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