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Following are the examples of typical economic decisions made by managers of a firm. Determine whether each is an example of what, how, or for whom to produce:
(a) Should the company make its own spare parts or buy them from an outside vendor?
(b) Should the company continue to service the equipment it sells or ask the customers to use independent repair companies?
(c) Should a company expand its business to international markets or concentrate on domestic markets?
(d) Should the company replace its telephone operators with a computerised voice messaging system?
(e) Should the company buy or lease the fleet of trucks that it uses to translate its products to markets?
What is imperfect optimization and why might it be costlier, in relative terms, for the poor than for the rich? Please suggest a public policy solution that may address this i
Assume that wages and prices are sticky and that we start at a long-run equilibrium. What is the inflation rate at the initial long-run equilibrium (the point where we start)?
Using derive the least square estimators. Where the lower case letters represent deviation from the variable’s mean. If you use upper case notation then the estimators become:
The Antitrust Laws (like the Sherman Act and the Clayton Act) Establish minimum fuel economy standards for an entire manufactured fleet of automobiles. Protect the consumer (g
Compute the ”Capitalized Costs” for Alternates “ R” and” S” using the interest rate of 10% and then select the best choice. “ R “ First Cost - $120,000, Annual Operating Cost
Using appropriate diagrams of (i) wage and price setting, and (ii) aggregate demand and aggregate supply, explain and discuss the effects of an increase in the price of oil, a
Suppose that the government imposes a temporary tari? on all imports, which makes imports more expensive relative to domestic residents (reducing the trade balance for any fix
Jared runs a personal training studio and earned $5,000 last month. His fixed costs are $4,000 and variable costs are $3,500. Should Jared shut down his business immediately?
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