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A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month. Its total revenues over the six warm months amount to $17,000, so that its profit for this period is $5,000. Its total revenues over the other six cold months are only $7,000, however, so that it loses $5,000 over those months, and just breaks even over the year as a whole. Wouldn't the restaurant do better by staying closed out of season?
Augmented Saving An alternative way of determining equilibrium GDP is to find the level of income where the sum of desired injections equals the sum of desired leakages. Desi
what is the impact of interest rate in consumption
The following is the information from the national income accounts for a hypothetical country: GDP Rs. 6000.00 Gross Investment Rs. 800.00 Net Investment Rs. 200.00 Consumption Rs.
Ok... So if the price level is rising, this means that inflation is rising as well, so the value of the dollar in the US would decrease meaning that purchasing power decreases as
State the term National income statistics National income statistics underestimate the true level of economic activity, and as people's living standards, because the non-moneti
What do learn by study the supply curve concepts? a. The relationship in between quantity of inputs and output b. Why production is frequently subject to reducing returns
state and explain two factors that cause the shifts in the balance of payments curve.
what is phillips curve
explain any two factors that cause the shifts in the balance of payments curve.
Analyze the relationship between the production possibilities curve and the circular flow diagram. Discuss how the change of production possibilities curve affects the circular flo
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