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An output of 17,500 units, you have calculated the degree of operating leverage 3.26, The operating cash flow is $78,000 in this case in this case, Ignore the effect of taxes. What will be the new degree of operating leverage for 18,500 units and 16,500 units?
Suppose the U.S. government was able to determine which industries would grow the most rapidly over the next 20 years. Explain why this doesn’t necessarily mean there should be a policy to support the growth of these industries. Analyze the disadvant..
What is the cost to Lavaland of moving from point E to point F. Illustrate what general economic principle is being illustrated.
A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each $1 earned. Will this program eliminate the poverty trap?
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman inde..
Suppose when you are 21 years old, you deposited $1000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age 65, 44 years later. How much more will be in your account if the ..
A monopoly is a market in which one firm sells a good or service that has no close substitutes and a barrier blocks the entry of new firms. In addition, as noted in “Are Microsoft’s Prices Too High?", Microsoft’s prices are too high in the sense that..
Globalization became (again) a hot topic in current Presidential campaign. Should we continue to open our door to international trade and division of labor at global level, or block those imported products because they are presumed to take our jobs t..
What is the probability that a sample of 100 units contains a. Five or more defective units? b. Ten or fewer defective units? c. Eleven or less defective units?
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies. Elucidate what production level are scale economies exhausted.
Suppose a country produces two goods (wheat and cars) from two inputs (labor and capital). Suppose further that we observe that workers and capitalists in the car industry oppose freer trade in the short run but only workers oppose freer trade in the..
The slope of the short run phillips curve is consistent with:
Define the five types of “production effects” of economic growth in a country and the five types of “consumption effects” of the economic growth. Then define the types of possible “overall” or “net” effects of the country’s growth on the relative imp..
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