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If the economy goes into recession, the demand of food might fall and also the price of the food will fall. The restaurant might be earning losses. In such a situation, the firm should reduce its variable cost of production by laying off workers, producing less raw materials in order to maximize profits. If the price falls below the average variable cost of production then the firm should shut its operations.
What will the end result be for the economy if that happens?
illustrate the effect of capital information by comparing the prodution possibitity curves, at the present time and ten years in the future, for two economie, one with a high and the other with a low rate of capital formation.
A fixed resource is one that?
A Monetary History of the United States, 1867-1960 uncovered the empirical reality that money is pro-cyclical and leading, the classical economists went to the drawing board.
The Ford Pinto case is a well-known case that is often discussed in the context of business ethics. To summarize, Ford's design of the Pinto's fuel tank was defective, causing fires if the Pinto was involved in even minor rear-end collisions.
Find out the real rate of interest earned by Albert in each of the three years and his total real return over the three-year period. Assume that interest earnings are reinvested each year and themselves earn interest.
Define civic responsibility. What knowledge, skills, attitudes, and behaviors should an effective citizen have? Explain the connections you see among service, civic responsibility, and business?
A firm makes and sells a computer for $1000. The variable cost to produce a computer, for the range of production of the firm, is $3000 per unit. The total fixed costs per year to make the computer are $4.0 million. How many computers must be made an..
At what value of X will Q be at its maximum. Illustrate at what value of X will Diminishing Returns set in.
The Baldwin's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Baldwin spends the same amount extra above the $1,000 recruiting bas..
You are an economic advisor to the Treasury of the United States. Congress is considering increasing the sales tax on gasoline by $.03 per gallon. Last year motorists purchased 10 million gallons of gas per month. The demand curve is such that every ..
The long-run aggregate supply curve is influenced by the price level. The opportunity cost of holding real money balances is the: Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are call..
The MLB has traditionally imposed minimum stadium quality specifications for all affiliated minor league teams. What does this restriction accomplish from the perspective of market?
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