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Assume you are currently working in a government job that pays$20,000/year and you have $40,000 in an account earning 10% interest. You have the opportunity to buy a fruit orchard that produces $23,000/year in revenue for a price of $50,000. You have always wanted to work in the fruit industry. Should you buy the orchard? Explain.
Suppose that the carnival and the circus have both come to town, and are both o?ering free admission. You have 6 free hours to kill. Draw the BUDGET LINE that shows your options for how you can spend the day.
The central bank new head decides to increase the response of interest rates to inflation. Explain how does this change in policy alter the response of the economy to a supply shock.
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,
If an option existed for an equivalent computer system to be purchased for $810 per month, paid at the end of each month in 2012, should they take this plan instead? Explain Answer!
State the rule for optimum input allocation to produce a given level of output at the lowest possible cost -when two inputs are variable and the prices of the inputs are given- and explain why it makes sense.
Utilize these new diagrams to Elucidate the long-run which will take place in this industry.
Steps that a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept
As oil prices rose during 2006, the demand for alternative fuels increased. Ethanol, one alternative fuel, is made from corn.
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?
The U.S. Treasury bill is yielding 2.6% and the return on the market is 11.2%. The corporate tax rate is 30%. What is the firm's weighted average cost of capital?
Derive an expression for average cost. Derive an expression for marginal costs.
Determine the cost to the government of buying firms unsold units
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