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Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than using accounting expense data. What is the difference between opportunity cost and accounting costs?
Construct a graph showing supply and demand in the electronic dog feeder market and how are the laws of supply and demand illustrated in this graph? Explain your answers.
Happy s Pets inc has had a virtual monopoly anti depressants drugs for animals for many years (similar to Eli lilly product prozac for human) with a patent on this drug it has had very little competition and this drug has been a major source of co..
Assume an airline flying on the Charlotile - Chicago route has estimated the demand curves for three different types of customers: business
Consider two policies-a tax cut that will last for only one year and a tax cut that is expected to be permanent. 1. Which policy will stimulate greater spending by consumers 2. Which policy will have the greater impact on aggregate demand
Using the static classical AD/YP model, demonstrate the effect of each of the following changes.
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP (hint: this topic is not discussed in your text. you will need ..
Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18.Compute the price elasticity of demand.
Explain how would the subsiquent changes in price affect total revenue. What are the major determinants of price elasticity of demand.
During the most recent recession General Motors and Chrysler lost huge sums of money in their operation (not counting government bailout money they could not assume they would get). How could they continue to operate at a loss
The data are available for output (Q) and Long Run Total Cost (LTC) for a firm. Using appropriate calculations determine the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.
During recent years, MicroChips Corporation has enjoyed substantial economic profits derived from patents covering a wide rang of inventions and innovations for microprocessors
Illustrtae what is the value of x which will make the manager indifferent among shirking and working hard.
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