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assuming that all other factors remain unchanged, determine how a firm's breakeven point is affected by each of the following: a. the firm finds it necessary to reduce the price per unit because of increased foreign competition. b. the firm's direct labor costs are increased as the result of a new labor contract. c. the occupational safety and health administration requires the firm to install new ventilating equipment in its plant. assume that has no effect on worker productivity
The only legal employer of military soldiers in United States is the federal government. If the government uses its knowledge of its monopolistic position, what criteria will it employ when estimating how many soldiers to recruit?
The firms consider a collusion. Each firm knows that the other firm will cooperate as long as they have not been cheated. Once cheated, each firm will not cooperate ever again. You are firm 1. Your discount rate is 0.3. Compare the present value o..
Elucidate the maximum amount that would pay for an asset that generates an income
Now assume that an unusual shift of the Gulf Stream leads to an unseasonably cold summer in Europe, destroying much of the grape harvest there.
Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.
earson Brothers recently reported an EBITDA of $16.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization?
Experiment with the number of steps for binomial tree model until your numerical result stabilizes to within one cent of the result given through the Black-Scholes formula.
Economists are in almost universal agreement that Free Trade is good for all countries. Explain why are they in such universal agreement.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
Pick a real-life rm that bundles products in some way. Describe how this pricing function is a form of price discrimination; in other words, why do some consumers effectively "pay more" for a particular product than other consumers do? Why is it a..
Tyvex LLC produces professional quality color laser printers. The market for professional color laser printers is monopolistically competitive. Suppoe that the inverse demand curve faced by Tyvex
Households make four kinds of economic decisions. Assume you have two households with the same income. Household A has one income earner and Household B has two income earners.
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