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Use the accompanying diagram to answer a-c.
a. Indicate the efficient result on the graph.
b. Illustrate the profits or losses from the efficient result in a.
c. Show the average cost-pricing solution. What profits are earned with that approach?
if a person borrows 12455.37 and agrees to pay it back in 60 monthly installments of 550.55 determinea effective
Find the distance driven that maximizes Mr. Carr's utility after taking into account the expected likelihood of flat tires (assume that the price of gas is $2.50 per gallon).
Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth)..
In 1989, the Detroit Free Press and Detroit Daily news (the only newspapers in the city) obtained permission to merge under a special exemption from the antitrust laws. The merged firm continued to publish the two newspapers
A small business that has taxable income of less that $50k purchases a machine for $10k. The machine yields an annual benefit of $5k over its 5-year life. Is the after-tax rate of return for this item closer to 5% or 12% Assume a straight-line de..
If Martha finds $10,000 under her mattress and deposits it in a demand deposit, by how much may the deposit expand the total money supply Assume that the legal reserve requirement (required reserves ratio) is 20%.
Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial banking system.
What is the outcome of this advertising game? If there is an advertisers dilemma, how does it differ from the advertisers dilemma discussed earlier in the chapter? How might the dairy industry solve this dilemma? (Related to Application 4 on page ..
Economists refer to consumer satisfaction as utility and use "utils" to measure consumer utility. Jill enjoys cookies and milk as a snack. Below is a table showing Jill's utility from consuming cookies and milk: Total Utility (Utils) 0, 1, 2, 3, 4..
Elected officials in the state legislature are supporting legislation that subsidizes the entertainment industry, specifically film and sports stadiums, because they promote economic growth for cities. Evaluate this claim if the employment multipl..
A bank has $100 million in assets. 50% of the assets are interest sensitive. It has $80 million in liabilities of which 70% are interest sensitive. What would happen to bank's profits if the interest rates were to go up by 2%
How does this affect the HR manager's hiring decisions?
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