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Should we treat capital investments differently or all the same? More specifically should we encourage certain types of capital investments? Why? What are some of the ramifications of our decisions?
You decided to open a restaurant, named FunMeal. FunMeal is a fast food restaurant with a very limited menu. What is FunMeals elasticity of demand? Is demand elasticity, inelastic, or neither?
Assume the military bureaucracy consistently misinforms Congress on total costs of producing military hardware. Suppose that it underestimates the actual costs and that the political representatives believe these estimates.
A company has the potential to earn $100M in the horizon year of a growth product that is expected to have a profit growth of 5% per year in perpetuity beyond the horizon year. If the company’s discount rate (WACC) is 12%,
a. Define the Bertrand model and its assumptions. Explain why the model predicts the perfectly competitive outcome despite the number of sellers. Discuss the limitations of the model.
select one of the cases presented between pages 232-266 of luthans and doh 2012. the case options include each of the
Assume a bank has $200,000 in deposits, a needed reserve ratio of 10%, and bank reserves of $50,000. Then the bank can make new loans in the amount of?
A television station is planning the sale of promotional dvds. It can have dvds manufactured by one of two suppliers. Supplier A will charge the station a set up fees of $1200 plus $2 for each dvds;
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suppose that the price of labour rises. explain how producers would respond using the isocostisoquant framework. what
Price elasticity of demand for this curve at any arbitrary point (say point E). To do so, first write the algebraic form of this Use your results from part a together with the fact that distance X in the figure is given by the current price, P*, to s..
Using a graph show (and discuss) that the presence of external economies creates a natural entry barrier for new entrants when there is an incumbent industry,
Method in which Herb could use a cost-benefit analysis to argue for or against an expansion
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