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Wage rates tend to change with national rather than with industry productivity because:
a. the minimum wage and other government controls prevent industry wage differentials
b. productivity differences result in product price differences, leaving real wages unchanged
c. labor supply responses tend to prevent wages from diverging in the various industries
d. labor demand responses tend to prevent wages from diverging in the various industries
The annual maintenance cost is estimated to be $100K. A major renovation at a cost of $50M is required every 100 years. What is the capitalized cost of the bridge at an interest rate of 5%?
A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the ..
The maintenance foreman of a plant in reviewing his records found that maintenance costs on a large press had increased with sales of a product that will decline in the future.
Calculate the following: quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets.
Explain how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?
The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of ec..
Illustrate what factors seem to be most important in determining development also why
Consider a monopoly where the inverse demand for its product is given by P = 50 ? 2Q. Total costs for this monopolist are estimated to be C(Q) = 100 + 2Q + Q2. At the profit-maximizing combination of output and price, deadweight loss is:
What is the impact of opening trade on the real rental on capital.
Exhibit 5-5 GDP data (billions of dollars) Personal consumption expenditures $5,207 Interest 425 Corporate profits 735 Government spending 1,406 Depreciation 830 Rental income 146 Gross private domestic investment 1,116 Compensation of employees 4,42..
Choose a country (not the United States or Canada) and identify some political and currency risks of that country and discuss why a U.S. company would invest (for example, build a factory) in that country. Also discuss some of the various internation..
For what proportion of these corporations the rate of return negative? C. For what proportion of these corporation was the rate of return between 5% and 15%?
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