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A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3 years. What is the present value of total revenue at an interest rate of 18% per year?
Why are the Average Cost Curves U-shaped. What is the Law of Diminishing Returns. Discuss a company's two short run options.
If the interest rate rises from 10 to 12%, compute what will happen to his consumption levels in period 1 and 2.
At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3.
Two Processes are under consideration for a certain production. Process A needs acquisition of a new machine which is estimated
Find the mean and standard deviation of team payroll for the 14 American League and the 16 national League teams.
Illustrate what is the probability that this worker is a college graduate. A non-college graduate. Are educational achievement and employment states independent
Compute the Learner index if the marginal cost of producing Lipitor is $0.30 per pill. Does the Lerner index make sense in this situation.
the short-run equilibrium values; and vi. the long-run equilibrium values. State in words what happens to prices and output in the short run and the long run.
How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule? Why do automatic stabilizers minimize the lag problems with fiscal policy?
Price Elasticity of Demand and Price Elasticity of Supply at the equilibrium point.
Illustrate what real world data would you want to examine. What would you consider to be evidence of tit-for-tat pricing.
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilizer and give two examples.
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