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Homework
A member of the board of directors is puzzled by the fact that the firm has had a very profitable year but does not have enough cash to pay its bills on time.
• In your first post, explain to the director how a firm can be profitable, yet not have enough cash to pay its bills and dividends.
• Describe some of the information that could be on the firm's statement of cash flows and use it, along with a demonstration of at least one ratio from the chapter, to explain cash flow and profitability to the board member. As support, develop your own data for items from the firm's cash flows statement.
Determine the market structure in which the low-calorie frozen, microwavable food company operates - Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company
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1. began in France with the development of the steam engine and then spread to the UK and the United States. 2. began in 1550 when the English learned how to use coal to replace wood as a heat source and spread to france and eventually the United S..
Assume a firm with the production function Q = AKα Lβ . Show that α is the output elasticity of labor, EQL , and β is the output elasticity of capital, EQK .
Economies of scale and efficiency
Suppose that marginal util- ity of Good X = 100, the price of X is $10 per unit, and the price of Y is $5 per unit. Assuming that the consumer is in equilibrium and is consuming both X and Y, what must the marginal utility of Y be?
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One of the reasons for the existence of agglomeration economies is scale economies in intermediate inputs. Answer the following. What are the 3 conditions that are required for the emergence of agglomeration economies from the sharing of input suppli..
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