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Suppose that each month a firm's monthly revenue is $10,000, its explicit costs are $7,000, and its implicit costs are $5,000. What is the firm's monthly accounting profit?
A deposit of $ 40,000 is put in a savings account at an interest rate of 3%. The interest is compounded quarterly, Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. What is the maximum annua..
XBC Inc. is planning to buy a new car. Model A costs $22,000 and is expected to have a life of 4 years. Model B costs $35,000 but it is expected to last 6 years. Model B provides a better warranty and it will save the company an average of $1,000 per..
World View: Paying to Pollute System Would Limit Emission, Allow Trading of Credits It costs nothing to pump greenhouse gases into the air. That is starting to change. Driven by fears of global warming, countries and states are trying to place a pric..
Suppose that high-definition television sets (HDTVs) are normal goods. Would the compensated demand curve for HDTVs be flatter or steeper
With a basic understanding of change management, you will now turn your attention to the service transition process as a whole.
Customary pricing is: a pricing method where the price the seller quotes includes all transportation costs. setting the same price for similar customers who buy the same product and quantities under the same conditions. deliberately selling a product..
Firms in perfect competition will leave the industry if they
Company A, a low rated firm, desires a fixed rate, long term loan. Company A currently has access to floating-rate funds at a margin of 1.2% over LIBOR. Its direct borrowing cost is 13% in the fixed rate bond market. What’s the total cost savings can..
An article in the Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the chain owns and manages itself. What type of agency ..
Fiscal policies is a tool used by government to stimulate the economy. This week we will consider monetary policies - these are policies implemented by Fed to support sustainable growth, support high employment and keep prices stable in the US econom..
Assume that the product depicted below generates external costs in consumption of $3 per unit. What is the market price (market value) of the product? What is the socially optimal output?
Speculate about why people in higher income groups vote for reasons that are borne out of a sense of duty rather than from economic interests.
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