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Tara is considering leaving her current job, which pays $85,000 per year, to start a new company that manufactures a line of special pens for personal digital assistants. Based on market research, Tara estimates that she can sell about 150,000 units during the first year at a price of $25 per unit. With annual overhead costs and operating expenses amounting to $3,350,000, Tara expects her new business to be profitable.
What are Tara’s expected revenues?
What are Tara’s accounting costs?
Are there other costs that Tara should consider from an economic perspective? If so, what?
If Tara decides to embark on her new venture, what will her accounting profits be during the first year of operation?
What will her economic profits be?
The EPA debating preserving a section of wilderness as a protected area. The land is owned by a rancher who has offered to lease the land to the government for 20 years in return for an immediate lump sum payment of 1.8 million. Should the agency pro..
Elucidate which among the following is true.
If a price is above equilibrium,
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and e..
Explain the role of the following factors in the upswing in the financial cycle that preceded the global financial crisis:
Demonstrate the short-run effect of this tax cut using the IS-LM model also the AD-SRAS-LRAS model. Illustrate what will take place to o/p also the interest rate.
One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?
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Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the prices of manufactured and agricultural outputs are $5 and $1, respectively;
1. Fill in brief definitions of each primary ethical theory. 2. Identify alternate names or variations of each ethical system based on your reading of the text and supplemental materials. Match the real-world examples listed below with the correspon..
A small open economy with a floating exchange rate is in recession with balanced trade. If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they choose?
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