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In March 2010 Hertz Pain Relievers bought a message machine that provided a return of 8 percent. It was financed by debt costing 7 percent. In August 2010, MR. Hertz came up with a heating compound that would have a return of 14 percent. The Chief Financial Officer, Mr. Smith told him it was impractical because it would require the issue of common stock at a cost of 16 percent to finance the purchase. Is the company following a logical approach to using cost of capital?
Illustrate what is Consolidated Company's total profit under this condition.
Which component of GDP is the most stable. Look for the smallest change from the year with the smallest contribution to GDP to the year with the largest contribution.
Explain what percentage change in the price of each of the three goods. Using a method similar to the consumer price index, compute the percentage change in the overall price level.
What price does it charge. What is Lite and Kool's markup. How much profit does Lite and Kool make. Do firms in monopolistic.
Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about Explain how irrelevant class was, commenting that he saw no useful purpose for economics.
Elucidate how and why the unemployment rate fluctuates with the inflation rate as is depicted in the Short-Run Phillips Curve.
Determine the new equilibrium price and quantity and how much tax revenue does the government earn with $6 tax.
What is your total cost? What is your Average Fixed Cost? What is your Average Variable Cost? What is your Average Total Cost?
Elucidate how if at all among the following events affects the location of a country's production possibilities curve.
One point made is that most demand curves are downward sloping. Can you think of any situation where an individual's demand curve for a product is upward sloping.
An agency is having problems with personal phone calls made during working hours.
Illustrate what are the opportunity costs of producing X and Y for Leah and Tim; and if specialization is possible, which good should Leah specialize in? and How about Tim.
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