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Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than using accounting expense data. What is the difference between opportunity cost and accounting costs?
Determine the rate at which Mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output. To minimize costs Mitsubishi should hire capital and labor until the marginal rate of technical substitution reache..
Discuss the criticisms leveled by so called "classical" economists at the Keynesian model described above, from the initial simplistic responses
The FED has three ways to expand or contract money and credit. The first way would be for the FED to buy existing U.S. Treasury securities. They do this by using the equivalent of newly issued currency. What this does is it helps to expand the res..
Assume you observed an acquisition by diversifying firm and that the aftermath of the deal included plant closings.
Illustrate what recommendations do you have for Speedy to offset the impact of their increasing costs. What recommendations do you have for Speedy to increase their total revenues.
Explain the advantages and disadvantages of using a change in the tax rate to achieve the desired increase in output.
suppose you know that CLS's MRT of wine of garbage disposal services is 2:1(to obtain more bags of garbage disposal services requires a reduction of one bottle of wine (keep inputs constant), and Brewster's MRS of wine for garbage disposal is 3:1.
make a paragraph in which you discuss market trends that McDonald's will face. Explain your conclusions. In your paper address how each of the following will change or will not change, and why.
Explain the sense in which the Fed is independent of the federal government. How independent is the Fed in reality? What is your opinion about the importance of the Fed"s independence for the U.S. economy?
The marginal propensity to import increases from 0.3 to 0.4. Find the new multiplier of the economy and explain why the multiplier has changed.
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
Suppose, in a given week, float raises $900 million, Treasury deposits at the Fed rise $1500 million, discounts and advances decline $200 million, and foreign deposits at the Fed increase $150 million.
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