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Imagine that you are an economist and that you have been hired by a mid-sized hammer factory to advise the management team regarding how many hammers they should make in one month.
Based on the scenario above, what information or guidelines would you take into account in helping to determine how many hammers the factory should make in a month?
How would you determine whether your recommendations had positive outcomes for the business?
How would pricing and materials costs factor into this?
When would you recommend the company revisit these decisions (for example, to see if you need to make any adjustments)? Why?
The U.S. Treasury bill is yielding 2.6% and the return on the market is 11.2%. The corporate tax rate is 30%. What is the firm's weighted average cost of capital?
Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem?
Twin brother and sister, Carl and Christy graduated several years ago from college. Carl, an architect, has worked in home design with Bulte Homes since graduation. Christy, a civil engineer, works with Butler Industries in structural components and ..
What is growth and why is it important? What role does innovation play in growth? Where does economic growth ultimately come from? Why is this? Comment on its impact on real income. How does savings affect growth? Use the Solow model diagram to show..
The ANOVA table is used to test the null hypothesis that all regression coefficients (excluding the intercept term) are equal to zero against the alternative hypothesis that at least one is different from zero. This test is known as the F test for re..
Skillet Industries has a debt–equity ratio of 1.5. Its WACC is 9 percent, and its cost of debt is 5.5 percent. The corporate tax rate is 35 percent. What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capital?
One of the major reasons that foreign expatriates have difficulty doing business in the United States is that they do not understand American slang. For U.S. companies going abored for the first time, which forms of nonverbal communication barrier, w..
1. Describe the product, production methods, scale of production, and sources for raw materials. What technologies are used 2. Describe the competitive environment within the industry. Is there a dominant firm
q. willie lohmann travels from city to city in the conduct of his business. every other year he buys a used car for
A negative externality:
Illustrate what are the no-trade monopoly equilibrium price and quantity of apples produced at home now.
Consider the statement, “Monopoly power comes from market acceptance, not from a patent, a prettier product, a slick advertising campaign, or anything else. So rather than spend your time in court, you should be out there drumming up business.” Do yo..
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