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After a competitive bidding process, Firm G wins a contract to collect and dispose of Firm H’s hazardous waste for $1,000 per year. Firm G’s labor costs are $200 per year, and because of the unique nature of the waste, it has to invest $8,000 in a special made-to-order furnace—money that it could otherwise have put in the bank at 10 % interest. Thus, the annualized cost of the investment is $800. So specialized is the furnace that, were the contract cancelled, Firm G could only scrap it and receive $1,500 for the metal.
1. By how much could Firm H threaten to cut the fee if subsequently some dispute arises over the terms of the contract, or if the contract comes up for renewal?
2. By how much could Firm H threaten to cut the fee if the furnace can be adjusted, at a cost of $3,000, to handle the waste of Firm J, which is willing to pay $700 per year for that service?
Choose any firm and think about its buying and selling activities -everyone buys and sells, or at least "procures" and "supplies", or otherwise participates in exchange transactions.
A project proposal for a new product will require a buildup of $50,000 of inventory in year 0 before sales are started. Associated with this, accounts payable will also increase by $20,000 in year 0.
. go to fred federal reserve economic data and search for pcecc96 real personal consumption expenditures - this is
Using the intermediate macroeconomic
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assume that canada imports 1 million pairs of shoes from china and none from mexico. a 50 tariff is added by canada so
Outline the human capital and signalling approaches to explaining the empirical link between education and earnings
The government is considering increasing the tax on gasoline by $3 per gallon and has asked you to determine the impact on Janet's consumer surplus. Janet spends 5% of her income on gasoline and her utility function is Cobb-Douglas.
How important were price considerations in making your college decision? Would a change of a few thousand dollars have mattered and would you expect the price elasticity of demand to be higher for financial-aid students or for non-aid students?
Assume you are a stock market analyst specializing in the stocks of theme parks, and you are analyzing Disneyland's stocks. The Wall Street Journal reports that tourism has slowed down in the US.
in a competitive industry the short-run average variable cost avc of a firm isavc 600 - 20q - 0.5q2a. derive the firms
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