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Peggy-Sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work for them at $125,000 per year. Currently, she is producing her own cookies, and she has revenues of $260,000 per year. Her costs are $40,000 for labor, $10,000 for rent, $35,000 for ingredients, and $5,000 for utilities. She has $100,000 of her own money invested in the operation, which, if she leaves, can be sold for $40,000 that she can invest at 10 percent per year.
a. Calculate her accounting and economic profits.b. Advise her as to what she should do.
Elucidate how much will each worker have to pay per unit to provide the socially efficient quantity.
Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.
Discuss how you would explain what this class was about to a friend of yours pondering taking the same class.
By signing a trade agreement illustrate what does this imply as regards international trade theory of the Ricordian model.
An upward or downward movement along a given demand curve or involves an outward or inward shift in the relevant demand curve for housing.
Explain how does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete.
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Using the midpoint method the price elasticity of Demand for a good is computed to be approximately
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Explain your answer the economy experiences an unexpected recession; the price of Good Z increases. The price of Good Y increases; the price of Good Z increases.
Utilizing the standard IS/LM model, elucidate how the scope of monetary policy to change real economic activity in the short run depends on the private sector reaction to interest rate changes.
Illustrate what were the major factors that have affected US household consumption While the recession in 2001
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