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The treasurer of a firm noted that many invoices were received with the following terms of payment: "2%- 10 days, net 30 days." Thus, if he were to pay the bill within 10 days of its date, he could deduct 2%. On the other hand, if he did not promptly pay the bill, the full amount would be due 30 days from the date of the invoice. Assuming a 20-day compounding period, the 2% deduction for prompt paymentis equivalent to what effective annual interest rate?
Due to a bust of stock prices, consumer wealth declines, and consumer confidence drops dramatically. Use the AD-AS model to predict what happens to the economy, both graphically and verbally. What happens to aggregate demand? What happens to the leve..
Should Roscoe's Rascals match the price offered by the competitor.
Assume that the exchange rate between the U.S. dollar ($) and the Mexican peso (P) is pegged at ER=$1/P4.
Past experience has explain how that an 80% learning curve applies to the labor required for producing these units. The time to complete the first unit has been estimated to be 1.76 hours.
Principal-agent problems:
What are the advantages and disadvantages of a “bailout” for an industry such as financial or automotive? Please give several examples and document any sources/data as appropriate. What is your opinion about government involvement and financial suppo..
Suppose that James and bob live on the same street. In the winter both of them like the show on their street to be plowed. Bobs demand is given by Q=40-p and James demand ha given by Q=30-2p. Suppose that the marginal cost of plowing the snow is cons..
The following table is a record of the data of a competitive firm on labour and output: Reproduce the above table on your answer sheet and complete the table. How many units of labour should be employed to maximise profit? Briefly explain your answer..
Consider the market for mustard, which is a complement to hot dogs. Suppose the price of pork, an input in the production of hot dogs decreases. Which of the following accurately describes how the mustard market is affected?
For the world's market economies, ________ over the past 50 years. international lending has declined gradually. foreign investment has increased significantly.
An economy at the top of a stock market bubbles will impact consumers by encouraging A. greater consumption of luxury goods and less saving. B. more work and delaying retirement. C. greater consumption of luxury goods and greater saving. D. more inve..
Assume to there are two segments to the market for rental cars. The Demand for rental cars by trade travelers
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