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The price of oranges has risen dramatically. Which of the following is likely to happen?
a) The demand for apples will decrease
b) The demand for orange juice will decrease
c) The supply of apples will increase
d) The supply of orange juice will decrease
e) Both c and d are correct
A firm (You) has to decide whether or not to enter a market which is serviced by a monopolist. Currently the monopolists earns $6 economic profits, while you earn $0. If you enter the market and the monopolist doesn't engage in a price war.
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to the owners is the difference between the total value and the amount owe..
Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?
q. youve been on your lunch break for less than 45 minutes when your boss orders you to return to work immediately or
Two small open economies, Fixed and Flex, can be described by the Mundell-Fleming model. The countries are otherwise identical except that Fixed maintains a fixed exchange rate, while Flex maintains a flexible exchange-rate regime. The governments of..
There are two excavators to choose from, A and B: The capital cost tor Excavator A is $150k, runs for 4 years and the maintenance costs are $20K per year. The capital cost for Excavator B is $150k, runs tor 3 years and the maintenance costs are $15k ..
A binding price ceiling...
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
What would the impact of a virus that infected the midwestern corn crop on the price of wheat and the quantity of of corn. Use two graphs one for corn and one for wheat.
For depreciation purposes, the purchase cost of the warehouse is divided into $100,000 in land also $400,000 in building. The building is a CCA Class 1 asset also is depreciated accordingly.
The student investigated the pricing of oil and gasoline. The study included a comparison of 2014 prices to 2015 prices. Explain the differences observed by means of supply and demand theory. What happened to cause the fall of oil and gasoline prices..
Illustrate what are the optimal prices for each product if you sell these products separately. What are your firm's profits. Explain.
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