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Your friend Fred is considering opening a ski shop in Colorado. He knows you are doing your MBA at Midland and is asking for some free consultation on the profits that he would make on his venture. Assume Fred will incur the following costs: building rent = $100,000/year, inventory = $250,000/year, energy = $50,000/year and labor (one clerk) = $10,000/year. In addition, Fred's current income as a computer programmer is $40,000 per year. Assuming Fred would earn $460,000/year in revenues from his ski shop. What is the accounting profit that Fred would get in his venture? What is the economic profit that Fred would get in his venture? Would you recommend Fred go ahead with his venture? Why?
During the course of one day, airlines cut fares on nearly 35,881 routes. (a) Briefly explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most res..
Hair Grow Co. has a demand curve of P=101-.00002Q Marginal cost for producing Hair Grow pill is $1. Illustrate what is the profit-maximizing price and quantity. What is the profit.
How can you justify existence of government-granted monopolies for such public utilities as local telephone service, natural gas.
Explain how is the equilibrium level of national income determined in the Keynesian cross model? What are the major limitations of this model.
Briefly elucidate why magnification effect plays an important role in predicting where various groups in economy will support or oppose international trade.
Compute the percentage change in nominal GDP, real GDP also the GDP deflator.
Explain the multiplier concept as it applies in this case. Illustrate what are the qualifications and limitations of the Multiplier Model.
Express the retailer's monthly profit from the sale of the cameras as a function of the selling cost. Estimate the optimal selling cost.
Enron will be an example of a dysfunctional company for many years to come. It was clearly a company riddled with fraud also excess
If an economy experiences increasing prospect costs with respect to two goods, then the production-possibilities curve between the two goods will be.
Estimate the following statement;"Managers should specialize by acquiring only the tools needed to operate in a particular market structure.
The accompanying table also graph elucidate how Samantha's preferences for consumption bundles composed of chocolate kisses also licorice drops.
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