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A few years ago a construction manager earning $70,000 per year working for a regional home builder decided to open his own home building company. He took $100,000 out of one of his investment accounts that had been earning around 6% a year and used that money to start up the business. He worked hard the first year, hiring one employee (his only salary cost for the business was the $40,000 paid to this employee), and generated total sales of $1,000,000. Total material and subcontracted labor costs for the year were $900,000. Calculate accounting profit. What are the opportunity costs for the manager of being in this business relative to returning to his old job? What is the economic profit of the business?
Can Alpha make a credible threat to punish Beta with a retaliatory price cut
How many Argentine pesos would it cost given the new exchange rate you just calculated.
Briefly discuss the similarities and differences between producer equilibrium and consumer equilibrium.
Illustrate what role does each marketplace structure play in the economy.
The alternative is to tie bonus pay to some absolute measure of performance. Discuss the merits as well as drawbacks of each approach.
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonalds's also Wal-Mart.
Why may the effective patent life of a drug be shorter than the legal life. Explain why may the effective patent life of a drug be longer than the legal life.
In 1990, the Supreme Court of the United States found which Texaco had indeed violated antitrust law. Which law do you think Texaco was found guilty of violating.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Illustrate what might you call an outward shift of a nation's production possibilities frontier.
Illustrate what feature of a PPF illustrates increasing opportunity cost also elucidate why does your PPF not have this feature.
demand for its tennis balls by using the subsequent linear specification
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