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A small start-up company invested in a new plant with an initial cost of $10 million. Operating costs for the plant were $3 million per year for 7 years. There was a special one-time charge of $1 million in year 2 to correct unexpected equipment problems. Revenues were $3 million in year 1, and increased by $1 million per thereafter through year 7. Determine the company's rate of return on this investment.
The makers of Tylenol pain reliever do a lot of advertising and have loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol
Explain how much money willyou have earned when the bond reaches maturity in five years.
Define the 3 types of price discrimination and explain why 1st degree discrimination is very difficult to practice. Provide 1 example where a form of 1st degree discrimination is practiced.
Which of the following must be true in an economy with a government but with no foreign trade?
She is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
Acopalypse Now Inc. is a company that manufactures products for the New Age market (Crystal balls, Nostradum predictors, Tarot cards etc.). The firm has 10 million shares outstanding trading at $ 10 per share, no debt outstanding and a cash balance o..
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
Demonstrate a critical understanding of the standardization vs adaptation debate in International Marketing. Make reference to positives and negatives from organisational and consumer perspectives.
Calculate national income form the following figure-consumption: 200 billion. if there were 80 million people in this country, what would the GDP per-capita be? if all prices were to double overnight, what would happen to the values of real and nomin..
Suppose that a consumer has a choice between gallon jugs of milk and half gallon jugs of milk. The consumer only cares about how much milk she consumes and not about the size of the jugs of milk. Write a utility function for this consumer. Is there a..
Using the general model of the monetary approach to exchange rate determination, consider the following scenario: Assume that real income grows at a rate of 3% in both the home country and the foreign country and assume the money supply grows at a ra..
Should policymakers use monetary and fiscal policy to minimize fluctuations in aggregate levels of economic activity. Evaluate pros and cons of active.
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