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At a recent meeting, the president and the CEO of Production, Inc. got into a heated argument about whether or not to shut down the company's plant in Flint, Michigan. The plant currently loses $50,000/month. The president of Production, Inc. argued that the plant should continue to operate until a buyer is found for the facility. This argument was based on the fact that the plant's fixed costs are $61,000/month. The CEO disagreed over this point, arguing that fixed costs do not matter in making the shutdown decision.
Consider both sides of the argument and come to a decision of whether to close the plant or continue to operate it. How would you explain to either the president or the CEO that he or she is wrong.
Describe the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price stability. Based on the information you researched from Federal Reserve publications, present and justify your own economic outlook for the next..
Consider the competitive market served by many domestic and foreign firms. The domestic demand for such firm's product is Qd=500-1.5P. The supply function of domestic firms is Qsd=50+.5P, while that of the foreign firms is Qsf=250.
use a picture to show the impact on the yield curve of the following shocks assuming that the expectations theory is
If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous. is this ..
If not, what government expenditures should be excluded from GDP? Are income taxes collected by the government from consumers included in GDP and, if so, how?
Give an example of an event that would shift the demand curve for secondary tickets to the Badger football game leftward. Explain your reasoning.
a. draw a production possibilities curve for the pleasure you get between hanging with friends and from doing your
A monopoly has demand given through P=20,000-25Q, and costs given through C(Q)=100Q+25Q2. Find the profit maximizing level of price and output.
in this question you will examine the effect of a sales tax on a monopolists profit maximizing price and rate of
w suppose that the interest rate falls to 50%, and the household decides not to borrow or lend at alll. Is the household better off or worse off with the higher interest rate?
Find the Cournot solution for the market price and output of mineral water and illustrate with a simple graph and the marginal revenue function facing a monopolist is given by: MR = 200-20Q Demonstrate that firms A and B have an incentive to coopera..
To conduct an effective database search a. choose one search engine and stick with it. b. enter variations of your search terms to increase the likelihood of obtaining desirable "hits." c. use long search phrases rather than short ones or single term..
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