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What are some of the implicit cost incurred by an entrepreneur in running his firm? How are these implicit cost estimated? Why must they be inclined as part of cost of production? What price does the firm pay to purchase or hire factors it does not own?
Does a firm need to diversify across different businesses in order to benefit from economies of scope? Why do firms continue to merge and acquire despite evidence that these transactions destroy firm value?
Determine what fiscal policy measure has a more direct impact to the economy - Is it an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month? Explain your reasoning.
In which of the subsequent ways does government involve the consumption component of planned cumulative expenditures.
Using the ideas we discuss this week, we are able to make clear statements on when a firm should operate and when it should shut down. When is it sensible for a firm to shut-down? What actions might a firm take to stay in operation in the long-run? D..
The following type of report occurs each quarter as firms announce their earnings: Weaker-than-expected results last week from Exxon Mobil have set a gloomy backcloth for results on Thursday from Royal Dutch/Shell. The company said its profit margins..
Carter Motor Company's new sedan is less than 32 miles per gallon. Identify the type I error for the test.
To maximize profits, a monopolist should charge as high a price as it likes.
Elucidate how if at all among the following events affects the location of a country's production possibilities curve.
Find the approximate sample size that will produce the desired accuracy of the estimate. You wish to be conservative to ensure that the sample size
Suppose that government policymakers decide that they will change taxes to raise aggregate output by $400 billion, and mpc = 0.5. By how much will taxes have to be changed?
Amy buys low-priced apples in Oregon and ships them to Nevada where she resells them at a higher price. Is Amy exploiting her customers in Nevada?
Write in depth on the possibility of interest rate hike over the coming year. What do you believe are the reasons for this occurrence? Comment on the solvency of social security?
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