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Last year, a toy manufacturer introduced a new toy that was a huge success. The company invested $2.5 million for a plastic injection molding machine (which can be sold for $2 million) and $100,000 in plastic injection molds specifically for the toy (not valuable to anyone else). Labor and the cost of materials necessary to make each truck is about $3. This year, a competitor has developed a similar toy that has significantly reduced demand for the toy truck. Now the original manufacturer is deciding whether they should continue production of the toy truck. If the estimated demand is 100,000 trucks, what is the breakeven prices for the toy trucks? Should you shut down?
Now assume that imports increase from $150 billion to $200 billion. Show three different ways that this can change the expanded savings/investment identity. d. If exports increased from $100 billion to $200 billion how would the savings/investmen..
Illustrate each of the following events using a demand and supply diagram for bananas.
Assume the United State economy begins in long run equilibrium. Concerns about global climate change cause government to significantly restrict production of electricity form fossil fuels.
Describe five additional factors that you consider most significant for forecasting the demand for natural gas over the next decade and briefly outline the processes you would use in gathering and analyzing these five additional factors for forecas..
You take $100 that you had kept under your mattress and deposit it into your bank account. If this $100 stays in banking system as reserves and if banks hold reserves equal to 10% of deposits,
Elucidate explain why after such unprecedented economic growth, technical advance economies still experience economic cycles and stagnation.
The Microsoft trial has been only one of the biggest investigations of antitrust behavior as the turn of the century.
One of the major problems in macroeconomics is disagreement in the debate over policy activism versus policy rules.
Ruby's Beauty College of Grand Forks, Nebraska, is one of many local beauty colleges each specializing in different haircutting techniques. Rubys Beauty College would become considered:
Illustrate what happens to the natural rate of unemployment and potential GDP if cyclical unemployment.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Determine the inflation rate for the next 12 months, base their calculations solely on the current inflation rate and is it a closed or open economy? What budget des the government run?
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