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The three factors that affect elasticity are the availability of substitutes, percentage of the customer’s budget, and the time period of adjustment. Explain how each of the factors would or would not affect the price elasticity of demand for a good or service that your company (or a company for which you have an interest) produces?
how should he change his bundle to reach his optimum? Explain your answer using the marginal utility condition at the optimal choice.
Which of the theories of comparative advantage could explain why the United States exports computers to Japan at the same time that in imports computer from Japan? Explain?
A public private initiative in Texas will significantly expand the wind generated energy throughout the state. The cash flow for one phase of the project involving Centrals point Energy, a transmission utility company, is shown. How many number of RO..
Erika and Kitty, who are twins, just received $20,000 each for their 27th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year f..
Ann owns a lawn mowing company. She has 240 lawns she needs to cut each week. Her weekly revenue from these 240 lawns is $8,400. If given an 18-inch deck push mower, a laborer can cut each lawn in two hours. Suppose the weekly rental cost (including ..
Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?
Suppose that Home Depot raises $900,000 million by issuing $600,000 of long-term debt and sell common stock for $300,000. The funds raised are used to buy new machinery and increase materials used in producing inventory. What items of the balance she..
For this discussion question, you will apply cost principles to business problems. A sunk cost is one that has already been incurred and cannot be recovered. Economic theory supports that only prospective (or future) costs are relevant to a decision...
At times, the Federal Reserve tries to change inflationary expectations. Why would the Fed want to raise inflationary expectations? How would this strategy of raising inflationary expectations affect consumption and investment? Be sure to tie your an..
One type of benefits involves giving workers discounts on the firm’s products. We noted that this type of system could reduce the firm’s costs by reducing some marketing expenses. Explain why offering such discounts (as opposed to increasing workers’..
It appears that Very Vegetarian financial statements follow a very strict form. Why must accounting reports be prepared according to specific procedures (GAAP)? Is it permissible for businesses to be allowed some flexibility or creativity in p..
The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure. That doesn't make it impervious to distortion, but M..
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