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When the employees of Apple Inc. make decisions that use resources more wisely, thus reducing costs, the shares of Apple stock increase. Ideally, managers and employees would then be rewarded with higher paychecks and higher dividend payments. this contrasts with the marketplace for state-funded "not for profit" higher education institutions where there is no profit to be extracted in terms of higher wages or dividends. some educational institutions, however, are run like profit maximizing firms. University of Phoenix is one such example. where would you expect cost to be higher: at a not for profit higher education institution or a for profit higher education institution, ceteris paribas? Explain using economic principles. Do not forget to address both the for profit intuitions. Please practice being thorough but concise.
What is the role of state law in determining whether an entity will be classified as a corporation for Federal income tax purposes?
In the previous problem, assume that the parents stop their contribution after 18 years (when their child enters a college). Use the modified version of Eq. (12.31), labeled (12.31MOD), and determine the amount they must contribute monthly for 18 ..
What do you predict you competitor will do given your price reduction and what is the total revenue each firm will earn given their respective pricing strategies?
Given the demand and cost estimates, what price should you change if you want to maximize your weekly profit?What output should you produce? What is your weekly profit?
If the elasticity of demand for X is 0.25, then moving along the demand for Good X: a: A 10% rise in the price of X will lead to a 25%fall in the quantity of X demanded b: A 10% rise in the price of X will lead to a 2.50% fall in the quantity of X de..
What is the value of the average fixed cost at the efficient volume and what is the efficient volume, toll and average fixed cost if the highway is built with four lanes? Explain.
Assume that Toyota transports the cars to London by itself at a cost of $120 per car. What price should Toyota set in London in order to maximize its profit? What will its profit in London be in this case?
The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today, and the New York Times for national news reporting, but the Star offers readers stories of local interest, such a..
Compute the average product of grain when each amount is used. Determine the marginal product of grain when between 1,200 and 1,800 pounds are fed, when between 1,800 and 2,400 pounds are fed, and when between 2,400 and 3,000 pounds are fed.
You purchased a bond for 9500 dollars. The bond matured in 4 years and you sold it for 111,000 dollars. The par value (face value) of the bond was 10000 dollars. Interest payments were made every 6 months. The personal rate of return you received (so..
Take some time to think about the ways in which your learning in this class relates to the real world. Has the knowledge you gained been valuable in helping you understand or evaluate events or policies? Are there any current events in the news that ..
1. How do you know that the firm represented in the graph above is a purely competitive firm 2. To maximize profits, this firm will produce at what output level (one letter) 3. Explain why this MR=MC position is the profit-maximizing position for any..
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