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Question: One of the following is NOT an external failure cost: Group of answer choices Takata files for bankruptcy after defective airbags are recalled Employee yells racist epithets at customer. Boycott results in loss of $2 million in sales. Workers are given Six-Sigma training after hours. Company pays. 180 lives are lost when a plane with defective operating software crashes
The Acme bag company manufactures and sells bags using paper and labor. Currently workers are paid $6 per hour and paper costs $20 per ton. Acme’s current total costs of production are $200,000 per day. Write an equation for, and illustrate on a gra..
Suppose a firm sells 20,000 units at a price of $10, but sells 40,000 units at a price of $8. Calculate the price elasticity of demand over these prices using the arc interval formula. Determine if the price elasticity if demand is elastic, inelastic..
Consider an economy where there are 100 unemployed persons and 900 employed persons. The job finding rate (f) of the economy is 0.3 and job separation rate of the economy (s) is 0.02. What is the average spell of employment? What is the average spell..
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
Which of the following is not a correct comparison between a contractionary fiscal policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model?
A large automobile manufacturing company is considering the installation of a high-tech handling system. Show your cash flow diagram from the company’s perspective. Should the system be recommended for investment? Show all your work and detail your r..
Dogs kept in a backyard and are barking constantantly are notorious in most city neighborhoods. Do these dogs pose a negative or positive externality? What (if anything) should the city do about these externalities?
There are increasing returns to size whenever increasing the output of the business results in: At the output level where MC is just equal to ATC:
transactions contributes to the calculation of GDP as total spending, then identify the relevant component of GDP (C, I, G, or NX).?
List and explain the factors that cause an increase in demand (i.e., shift the demand curve to the right). If price is or is not one of these factors, explain why? List and explain the factors that cause an increase in supply ( i.e., shift the supply..
i firms often face the problem of allocating an input in fixed supply among different products. nbspfind the optimal
Review what you know about business cycles, GDP, unemployment, CPI, monetary policy, and fiscal policy and respond to the following:
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