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Assume that a company has a budget of $12,000, that the wage rate is $10 per hour, and that the rental rate of capital is $ 100 per hour. If the wage rate increases to $15 per hour and the rental rate of capital rises to $120 per hour, what happens to the producer budget or isocost line? What will happen to the equilibrium level of output because of this change in factor prices? What will happen to the relative usage of labor and capital because of the change in factor prices? Explain.
Explain all your answers below clearly, including brief definitions of each term.
Compute Foust's after-tax cost of new debt and common equity. Calculate the cost of equity.
Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
Illustrate what sources of information were researched and utilized. What economic measures are commonly used in discussions of the health of the economy.
Assume you are the manager of a California winery. How would you expect the following events to affect the demand or quantity demanded for your product?
A symetric information can have deleterious effects on market outcomes. Discuss a few tactics that managers can use to overcome these problems.
Discuss why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
Under the concept of equilibrium whenever dealing with quantity and price.
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Target costing is just new fashionable term for something which we have done all along.
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
Given the industry's concern that workers shirk, they start employee at $10 and increase the pay by $0.40 each year they are on the job.
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