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In a 100% socialist structure, the owners would be faced with what challenges? (Points : 5) They lose the opportunity to make and hold onto extreme profits. They assume all the financial risk if their businesses fail. They no longer can change careers because they “feel” like it. They lose the ability to start new companies of their own. A and C B and D A, C, and D None of the above
A perfectly competitive tomato industry is in long-run equilibrium. Now suppose that some consumers are getting sick by eating tomatoes that contain salmonella. Describe how this change will affect short-run economic profits. What will happen to the ..
Draw a diagram illustrating the profitmaximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that repres..
Suppose you own a specialized auto parts manufacturer. You purchase and have installed a new machine to make a particular type of part. The price of the machine plus installation is $300,000. If you have already purchased the machine, should you go a..
When the government requires specific processes for reducing pollution, it is using
Organize the above data into the appropriate categories for the current as well as capital accounts determine the current account balance, the capital account balance, as well as the official settlements account balance.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 80 - 0.25P, and the marginal cost of production is $120. Determine the optimal number of units to put in..
Suppose the total demand from all current consumers for a given good is estimated by econometricians to be p = 60 - 2q (this is called "inverse" demand function, since it's written as if prices are functions of quantity demanded). Now suppose that..
Consider an investor with preferences given by the utility function U = E(r) – 0.5Aσ2 and there are two portfolios with the following characteristics: Suppose that the investor has a level of risk aversion of A = 2. Which portfolio should the investo..
Wilderness Adventures has earnings per share of $2.45 and dividends per share of $1.05. The total equity of the firm is $850,000. There are 40000n shares of stocks outstanding. What is the sustainable rate of growth?
Which of the following is an example of adverse selection?
Suppose that the Fed intervenes in the foreign exchange market to lower the value of the dollar. Assuming that domestic and foreign assets are perfect substitutes, use T accounts of the Fed to show how an unsterilized foreign-exchange intervention di..
If Evren wishes to make 25 tons of donuts, how many bakers are required given the current level of capital? How much will it cost to produce this (total cost)?
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