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Q1. Sally's firm produces granola bars with a fixed cost of 10 (this cost is already sunk). Her variable cost function is VC = q2 + 2q. Assuming the market for granola bars is competitive, derive Sally's supply function? What is Sally's surplus if the market price is 6? What is her profit? Does she want to stay in this market? Explain.
Q2. What is a one invention that had good impact on the international economy and why. What were the impacts of this invention? Were impact good or bad?
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100.
Describe the Schumpeterian notion of "creative destruction"
The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy.
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs?
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
Similarities in the definitions of management quoted from authors of management textbooks
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