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Sally quit her job as a CFO where she was earning $50,000 per year to start her own financial consulting firm. She converts a building that she owns, which was previously rented for $12,000 per year, into an office. She withdraws and uses her $100,000 savings, which she was earning $5,000 (5 percent) interest per year, to start her business. In her first year of business, she earns $150,000 and has the following expenses: Utilities, $12,000; wages (paid to an assistant), $30,000, and materials, $20,000. Sally tells her friends that despite making profit, it is too costly for her to continue running her consulting firm. How do you justify Sally’s claim? Show work.
A firm in Perfect Competition has a Total Cost Function: TC = 6Q^2 - 8Q + 12 with a current P=$6. What is the current Quantity and Profit or Loss? Will firms enter or leave th
Explain why you cannot primarily rely on budgets or expenditure documents to ascertain the costs of a project. In other words, why is it inappropriate to use budgets for estim
A large food-processing corporation is considering using laser technology to speed up and eliminate waste in the potato-peeling process. To implement the system, the company a
Consider a firm in which labor is the only variable input in the short run. With the aid of diagrams, explain the relationship between a firm's short run production function,
Identify and discuss the roles of TWO (2) government institutions (organizations, agencies) that guide and/or regulate technology in the USA. Also, comment on the general “eff
Discussion Prompt 1. Answer the following questions in your initial thread. Based on unit lessons and readings, describe some policies that have been proposed to deal with cli
Predatory pricing is easy to prove in a court of law. An incumbent firm may experience a learning curve that allows it to produce at a lower cost than a potential entrant. A f
firms marginal cost curve crosses marginal revenue curve at an output level of 1,000 unit. What is firms current profit. What is likely to occur in this market and why.
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