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Q. A brewery is considering two potential production investments:
Option A costs an initial $2 million as well as will involve constant marginal cost of $5
Option B costs an initial $4 million as well as will involve constant marginal cost of $3
In order to make the computation simple, presume that the annual capital cost is 10% of the total outlay. At which production quantity every year would the brewery be indifferent between these two investment opportunities?
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
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Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent..
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.
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DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
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In Managerial Economics, Applications, Strategy, and Tactics, if contract promises were not excused because of acts of war, would the clearing and settlements clients of Bank of New York change their behaviour
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