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Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%. What is Abdul's implicit cost?
Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration. Mark-up pricing might be more suitable for monopolies. The higher the fixed cost the lower the break-even output quantity.
The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50. Each tree sells for a price of $65. The Carolina Christmas Tree Corporation’s total revenues are
For a firm to be economically efficient from society's point of view, it should produce at the point at which:
Assume you plan to invest $10,000 at one of the following interest rates. Order the interest rates in declining order of the amount of interest they would provide in one year
What is a duty that managers owe to the corporation? Discuss an example of how a manager may uphold that duty in a positive way. Provide an example of an act or omission that depicts a manager violating the duty.
Find a pop culture reference (from TV, movie, music, magazine...) of an economic concept. The reference can be anything we have covered in class.
CB Electronix needs to expand its capacity. It has two feasible alternatives under consideration. Both alternatives will have essentially infinite lives. Construct a new building of 20 000 square metres now. The first cost will be $ 2 000 000. Annual..
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
Show graphically and explain how long-lags in the effectiveness of monetary policy have the potential to lead to acceleration in the inflation rate. (Assume that the economy is in a recession when the Fed enacts the monetary policy change.)
What would be the impact of BRICS' proposal for a new World Bank and IMF, if implemented, on US voting power and the dollar? What would be the impact of BRICS' proposal for a new World Bank and IMF, if implemented, on the voting powers of England, Ge..
Mr. Allen views nutella and soda as perfect complements. She always needs two tablespoons of nutella with one tablespoon of soda, U=min{J, 1/2N}. What will her optimal consumption bundle be if the price of soda is $0.25 and the price of nutella is $0..
The makers of Tylenol pain reliever do a lot of advertising and have loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol
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