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During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and earning a 14 percent annual rate of return.
The explicit cost of the firm are $______. The implicit costs are $______. Total economic cost is $_______.
The firm earns economic profit of $_______.
The firm’s accounting profit is $________.
If the owners could earn 20 percent annually on the money they have invested in the firm, the economic profit on the firm would be _______ (when revenue is $175,000).
Functions of Money The text noted that money performs three basic functions. Select one of these functions and describe the ways rapid inflation could undermine money's ability to perform the function you selected. Cite all references used. This ..
Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..
u.s. trucking pays its drivers 40000 per year while american trucking pays its drivers 38000 per year. for both firms
Suppose that you can schedule a worker for up to 10 hours per day. The total benefit and total cost functions are B(H) = 1200 × √H and C(H) = 200H. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 600/√H and MC(H) = 200. ..
A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this information, Compute a fair price of this stock.
The Wall Street Journal's experience after an increased its price to 75 cents. Illustrate what implicit assumptions are the publisher and the analyst making about the price elasticity.
A monopolist faces the demand curve Q = 11 - P . The monopolist has a constant average (and marginal) cost of $6 per unit.Draw the average and marginal revenue curves and the average and marginal cost curves. What are the monopolists profit-maximizin..
Find out the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level.
Examines the choices made by individual participants in an economy, while macroeconomics considers the economy's overall performance
is this the same quantity that the competitive market would have provided in equilibrium? What are the market forces leading to this quantity?
q1. compare and contrast the way classical and keynesian theory determine the demand for money and how it is related to
If the goverment of Langkawi decides that it cannot wait for the economy to self-correct in the long-run, what policy action could it posibaly take now? what trade offs,if any, will it have to be prepared to make in term of economic outcomes?
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