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Draw an in?uence diagram for the following problem: Hatton’s mail order company is planning to install a new computer system next year. Two possible systems are being considered: The Gamma II and the Elite. The Gamma II will mean that the company incur higher initial costs than the Elite, but the total costs associated with the chosen system over its life time will also depend on whether the company decides to expand the computer system at some future date (the Gamma II system would cost less to expand). The expansion decision will be in?uenced by the level of sales achieved by the company over the next 3 years, while the level of sales will, in turn, be in?uenced by the size of the market and the amount of competition which Hatton’s has to face. It is thought that the size of the market will itself be in?uenced by the performance of the economy (e.g. a continued recession would depress the market). It is also thought that if the recession continues a number of rivals will go out of business so the severity of competition will be less.
Using one or more recent examples reported in the U.S. media, explain why the state plays a key role in shaping economic processes.
If make an initial investment of $5000 at 6% per month compounded monthly. How much would it be worth in 3 years?. Draw a cash flow diagram of what this would look like.
If the fixed costs for a perfectly competitive firm increase, what is the likely impact be on the price the firm charges, the output it produces and the economic profits it earns in the short run, all else held constant?
Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted by M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = m5 B5 and wants to produce 10 barrels of pale ale this week. How..
Jen grows corn on her farm and uses it only for her family and to feed her farm animals. Assume the US Department of Agriculture passed an administrative rule that limited the amount of corn that Jen can grow, and set of financial penalty if she exce..
You compete with many firms offering similar products (monopolistic competition). An economic consulting firm has estimated the own-price elasticity for your most profitable product is -1.50. Your marginal cost is constant at $75 across most of your ..
A bathtub model of unemployment:
calves and burying them in mass graves rather than transporting them to markets. Elucidate what economic factors may influence such behavior.
What was the rate of growth of per capita real GDP before the increase in population growth? If the rate of growth of real GDP remains unchanged, what is the new rate of growth of per capita real GDP following the increase in the birth rate?
Elucidate how much the equilibrium quantity of wheat sold. Elucidate the actual cost which is equal to the equilibrium cost.
Use the sticky wage theory of aggregate supply to explain what will happen to output and the price level in the long run. What role does expected price level play in the adjustment?
Illustrate what is the marginal revenue product function. Assume which most workers in Pakistan work 48 hours per week also which there are four weeks in a month.
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