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Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cost of capital as shown below. Alternative Projects, Required Investments, and Expected Rate of Return Project Investment Required in Millions of Dollars Expected Rate of Return on Investment A 150 12% B 300 15% C 125 10% D 75 16% E 50 20% F 500 14% G 250 18%
Illustrate what are the major performance goals that we set for the economy, and how do we measure the performance?
Make a separate diagram to show the answer, and describe what happens to equilibrium price and sales, explaining why or why not this makes sense in the real world
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
Illustrtae the difference among concretionary and expansionary fiscal policy.
First, read Fuguitt and Wilcox, pages 181-183. Then, from the Stock and Watson text Web site find a data file CAschooldistricts that contains data on school districts for 420 districts in California. A detailed description is given in CAschool_D..
What do you think that Antitrust Department should punish Google for being a "monopolist". Did the author of the article think so.
Suppose the public in Nealland does not hold any cash. All commercial banks, however, hold 5 percent of their checking deposits as excess reserves, regardless of the interest rate.
Assume the station plans to give away the videos. How many dvds should it order. From which supplier.
Assume government imposed a minimum wage above what otherwise would be the equilibrium wage rate for this segment.
Do workers choose to work more because wages are temporarily high and do workers choose to work less because wage are temporarily low? This is key to the "intertemporal substitution" story of this chapter. The following chart shows how much wages ..
According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
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