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HomeGrown is a small restaurant that specializes in serving local fruits, vegetables and meats. The company has chosen to enter into a long-term relationship with Family Farms, a local farming operation. The two parties have decided to enter into a long-term contract where Family Farms will supply produce to HomeGrown at specified prices and volume each year. Before signing a contract, HomeGrown is trying to decide how long the contract should be. It estimates that each year the contract covers saves the restaurant $2,000 in bargaining and opportunism costs. However, each year the contract covers also requires more legal fees. HomeGrown estimates that the number of hours it will need from lawyers, L, has a quadratic relationship with the number of years on the contract so that L = Y2 where Y is the number of years for the contract. If HomeGrown’s lawyers charge $180 per hour, how long should the contract be?
Cartels with a small number of industries have a greater probability of reaching the monopoly outcome than do cartels with a larger number of industries.
Two Processes are under consideration for a certain production. Process A needs acquisition of a new machine which is estimated
Illustrate what is the new level of gross national debti. If 100 percent of the deficit is financed by the sale of securities to federal agencies.
What would be the new equilibrium in this economy if Investment increased by $12.
its marginal propensity to consume is 3/4. If its GNPin period10 is 2,048, explain how much labor and capital did it start with in period0.
The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system in?nitely.
Ruth decides to open a Doggie sweater company. It costs her approximately $5 in wool costs, and she pays $3 in labour costs to her knitting ladies. Their group meets at a hall which costs approximately $50 for rent.
Venezuela had considerable capital outflows after election of Hugo Chavez. If Venezuela had fixed exchange rates, determine what effect would these flows have had on Venezuela's overall balance and value of the Bolivar
Suppose Noah and Naomi's short-run weekly production function for garden benches is F(L)=0.4L. Where L represents the number of hours of labor employed. The wage rate is $10 an hour. What is their short-run cost function?
How much does consumption change this year in absolute dollars ($ ΔC) as a result of a $5,000 annual tax cut to your income, if the tax cut.
Entrepreneurship has become the new way of doing business in our world. With economies in decline and organizations downsizing and the lack of opportunities that satisfy, entrepreneurship has been born.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
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