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The president of the United States receives an annual salary of $400,000. Derek Jeter, shortstop for the New York Yankees, receives an annual salary of $23.2 million. If the president of the United States actually contributes more to society than Derek Jeter, we can conclude that:
actors other than marginal revenue product probably explain the salary differences.
the salary differences are based entirely on marginal revenue products.
there is never a relationship between marginal revenue product and pay.
the markets for their respective services are perfectly competitive.
q1. suppose a competitive firm that is profit maximizing pays a wage of 750 per week and the price of its output is 15.
Calculate the yield to maturity for each bond. Calculate the expected annualized compound rate of return over the five years for each bond. Which bond offers the higher expected compound rate of return?
This will mean replacing one of the weekly passenger flights with a freight flight
Illustrates what are the advantages of utilizing the funds in the construction process.
Suppose investment I is 900, government purchases are 800, and net of exports are 300. What is the spending balance? What is the GDP multiplier?
Profit max level of output. Quantity firm will minimize average total cost. Illustrate at what price will y shut down.
Two banks (Franklin and Lincoln) compete for customers in the growing city of Logan town. Both banks are considering opening a branch office in one of three new neighbour hoods: Hillsboro, Fremont, or Oakdale. The strategies, assumed to be the same f..
Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue.
Some Keynesian economists criticize official unemployment statistics for understating extent of joblessness in United States. Which of following statements represent short comings of official unemployment rate reported by Bureau of Labour Statisti..
Suppose that U.S. citizens start saving more. What does this imply about the supply of loanable funds and the equilibrium real interest rate. Explain what would happens to the real exchange rate.
If you move to a larger house in 10 years and pay off the loan, what is your effctive annual interest rate? d) If you are transferred in 3 years, what is your effective annual interest rate?
A movie theatre has a cost function which entails the rent of the commercial building of $50 per day (fixed cost) and a marginal cost of $5 per viewer. Assume now that the movie theatre can give price discounts to students. Explain the concept of pri..
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