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Q1. Recall that ABC Company has periodically borrowed funds but contemplates a stock or bond offering so that it can expand by acquiring some other businesses. It has contacted Kelly Investment Company which is a securities firm.
Explain how Kelly Investment Company can serve ABC and how it will serve other clients as well when it serves ABC. Also explain how ABC Company can serve Kelly Instrument Company.
Q2. A firm has a fixed cost of $5000 and a constant marginal cost of production of $500 per unit produces. What is the firm's total cost function? And average cost function? If the firm faces a demand function p=40500-2q, where p and q are the market price and quantity demanded respectively, at what level of output will this firm maximize profit? Elucidate what is the level of profit for every unit of output produced at equilibrium?
Does a persistent balance of payment deficits result in a pressure to devaluate the currency.
A state government wants to provide incentives for single parents to enter the labor market and become engaged.
Suppose, on the other hand, that the second country retaliates with an export subsidy of its own.
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
Which is a tax on profits generated from mining of iron ore and coal.
Relative to Tom, does Dick require more bananas, less bananas, or the same number of bananas to give away an apple.
Which of the government policies below is not likely to encourage per capita economic growth.
What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium.
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
The annual operating and maintenance expenses are estimated to be $1,000. If Convington's MARR is 15%, how many years will it take before this machine becomes profitable.
Compare and contrast inflation and deflation. What are some of the damaging effects that each has on an economy.
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