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State whether each of the costs below is either sunk, opportunity, cash or book:
Amount you paid for a piece of equipment last month:
Value claimed for tax purposes on a depreciated soda filling machine:
Price paid to a consultant for a feasibility study on a prospective project:
Monthly utility expense:
Value of floor space in a warehouse facility left empty the past 10 quarters:
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the “knife’s edge model”?
PhilaU Equipment Co. has a CNC machine that was purchased 5 years ago for $150,000 plus $25,000 of installation costs. It has been depreciated as a MACRS-GDS 5-year property class. It has an estimating remaining life of 8 years. O&M costs were $10,00..
Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby, the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the ..
Using demand–supply diagrams in the labour market show what it means that the market “clears”. Label the axes carefully.
Why is rent not needed to make land available, but very useful in guiding the allocation of land in the economy to its most productive uses?
If you each charge a high price, you each earn profits of $200. If you charge different prices, the one charging the higher price loses $50 and the one charging the lower price earns $300.
Currently, there has been considerable public controversy over the level of remuneration for some executives and over the fees paid to board members. Also, in situations where executives have left the company, boards also are being asked for severanc..
When you move along a demand curve: A. income and the price of the good are held constant. B. all non-price determinants of demand are held constant. C. only price is held constant. D. all determinants of quantity demanded are held constant.
q1. business is booming at a local fast food restaurant. it is contemplating adding a new grill and machine of french
Suppose that firm 1 and firm 2 operate under conditions of constant average and marginal cost but that firm 1’s marginal cost is c1 = 10 and firm 2’s marginal cost c2 = 8. Market demand is Q = 500 − 20P. Compute firms’ prices, profit and market outco..
If the stock price rises, the price of a call option on the stock ________ and that of a put option _________ . (Why?)
It can be really hard to engage this kind of thinking because it requires risks that aren't even known or knowable, but it's these very risks that reap the biggest rewards. So, as a leader how might you evaluate an option like this? What would it tak..
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