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Andrea’s Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns. The total costs are given in the third column. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. i. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?
One group of economists, the monetarists, look at the equation of exchange and say that the Fed should simply increase the money supply by an annual rate equal to the long-run growth rate of the economy. Explain the effect that such a policy is likel..
Home has absolute advantage both chocolate and wine, comparative in chocolate. Home has absolute and comparative advantage in wine.
Several years ago, Castles in the Sand, Inc., issued bonds at face value at a yield to maturity of 5.4%. Now, with 5 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased ..
Discuss the probability that the annual net cash flows will be negative. Determine the probability that the annual net cash flows will be less than $20,000.
As the manager of smith construction you need to decide on the number of homes to build in a new residential area where you are the only builder. How many homes should you build and what profits can you expect.
Suppose you work in a financial institution, how you would advise your clients.
The Equation of Exchange is given as MV = PY , where M= the nominal money supply, V= the velocity of money, P= the price level and Y=real GDP. What is the Monetarists’ argument (based on the quantity theory of money) about an increase in M? Explain a..
Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes): The company has predicted a sales increase of 7 percent. Assume Fire pays out half of net income in the form of a cash dividend. Costs and ass..
Which of the following is an example of productive inefficiency?
Array Solutions requires a 14 percent return on their projects. Analysis shows that even though they have been earning the desired 14 percent, their real return appears to be only 10 percent when they look at what they can buy with their returns. Exp..
Identify and describe four means of political risk adaptation. Give a cited source for each mean. I know what the four means are of political risk adaptation the problem I'm having is where do I find websites to give examples of these. If someone cou..
This grazing land was for whole town and families could allow their flock of sheep to graze free of charge. Why is it that grazing land was not protected by individual families.
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