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Q1. As your corporation, "When Life Gives You Lemons Inc.", is opinion about expanding the numeral of stands that it currently has from 15 to 20. It will cost $200,000 at present to complete the extension. The extension will eternally increase profits by $15,000 every year starting in one year's time. If the interest rate is 8% what is the PDV of the expansion project. Should the company do it
Q2. Overhead at the water cooler:" i think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs." would you agree with this statement (assuming this person is not your boss)? Explain.
Most business in the U.S. is conducted by corporations, and corporations popularity results primarily from their favorable tax treatment.
Compute market price, quantity of wheat produced, and the new equilibrium number of farms in this new situation.
When a worker announces that she plans to quit, say next month, the threat of being fired is generally not credible. The worker may find it in her interest to shirk. What can a manager do to overcome this problem?
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
Calculate Pete's marginal and average cost schedules. What are Pete's profit-maximizing output and price? What is Pete's economic profit? Explain your answer.
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
The outcome in that market will not be very different than if it were a perfectly competitive industry." Explain if he is correct and how you would respond to his reasoning.
Estimate the macroeconomic implications and microeconomic consequences of a monopolistically competitive firm or an oligopoly firm filing for bankruptcy.
Illustrate what were the major factors that have affected US household consumption While the recession in 2001
It is possible for a company with positive retained earnings to be unable to pay cash dividend since they may not have the cash supply.
Illustrate what does this mean for the survival of small firms in the industry.
q1. consider the supply curve qs 4p. what happens to the price elasticity of supply along the curve as the quantity
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