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· Average Fixed Cost = $2
· Average Variable Cost = $1
· Marginal Revenue = $1.50
a) Other things constant, should your friend continue to operate in the winter months? Be sure to explain to her why she should or should not continue to operate.
The setup activity price driver rate, using the best cost driver for this situation.
Consider current budget problem of many states. What is it Explain. What are the two basic choices for them to get out of financial trouble Explain the impact of each. Why are some states playing for a federal bailout if needed
Suppose the demand for what you "sell" rises relative to the supply of what you sell. a. How would you know demand has increased (What is the first piece of information which would lead you to conclude that demand has increased)
The supply curve shows a positive relationship between price and quantity supplied. Elucidate role does the loss of increasing opportunity cost play in this relationship? What role does profit play in this relationship.
Use the supply and demand model to explain what happens to the equilibrium price and the equilibrium quantity for frozen yogurt if there is a sudden increase in the price of milk.
Explain the households budget line and its relationship to the indifference curve.
How much have prices risen between 2000 and 2010? Compare the answers given by the Laspeyres and Passche price indexes.
A collateral bond with a face value of $5,000 was purchased by an investor for $4,100. The bond was due in 11 years, and it had a bond interest rate of 4% per year, payable semi-annually. If the investor kept the bond to maturity, what rate of ret..
Elucidate how will looming fears of a recession expected to decrease consumers incomes by 4 percent over the next year impact the quantity of coffee Starbucks expects to sell.
Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years).
Elucidate as accurately as you can how each of the following individuals which would be affected by unanticipated inflation of 10 percent per year.
What is the saving function? What is the marginal propensity to save and what is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw?
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