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Assuming other things equal, according to the law of demand:
A. price and quantity demanded are directly related.
B. consumers will buy more of a product at high prices than at low prices.
C. the larger the number of buyers in a market, the lower will be product price.
D. price and quantity demanded are inversely related.
Machine A costs $20,000, lasts 3 years and has a salvage value S of $3,000. Machine B costs $12,000, lasts 2 years and has a salvage value of $2,000. The machines can be purchased at the same price with the same salvage value in the future, and are n..
Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $105,000 per year, and the other was for $85,000. What are her accounting profits? What are h..
Which of the following is likely to occur when copyright laws are enforced?
Suppose that the government decreases spending by $100 billion. What happens to aggregate demand? What is the likely effect on prices and output? Where are the new equilibrium price level and GDP relative to the old levels?
Suppose there are two spice-producing firms, and each can set up one trading post. Illustrate where would they set up trading posts and what prices would they charge.
Assume that the salary of MBAs was normally distributed. If the mean salary of a MBA was $100K with a standard deviation of $10K. What is the probability that a MBA makes less that $70K or more than $130K?
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
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..
q.assume there are 2 products clothing as well as soda. both brazil plus the us produce each product. brazil
Consider our competitive market described by the supply and demand model. If there are no externalities, explain why economists describe the competitive equilibrium as efficient.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Suppose that in 2013, Global launches an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, price per share of Gl..
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