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Lender perceive that you are risky,so you must pay 12 annual percent interest to borrow from them. You only receive only 6 percent on the funds you have deposited in the bank. Do the opportunity cost of borrowing and using your own funds differ in this example? Explain why and why not
A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts
Rcognize the three phases of production and describe why the firm short run production has only one rational stage of production.
If a firm in a perfectly competitive market experiences a technological breakthrough, A. other firms would find out about it eventually B. other firms would find out about it immediately C. other firms would not find out about it D. s..
Local performers are gradually loosing in the competition with recognized international bands, and Serida’s income decreases to $50 while prices are the same as before. What is the equation of this new budget line? How does it compare to the budget l..
You put $20000 on deposit on your thirtieth birthday at 5 percent compounded annually. On your fortieth birthday, the account begins earning 6 percent. Then on your fiftieth birthday, it begins earning 7 percent.
What is DynaLinear's breakeven sales volume (in units) for converters and calculate the degree of operating leverage at a projected volume of 14,000 units and explain what the DOL means.
Discuss the various ways governments can handle externalities, such as noise from a local airport or a barking dog or building of commercial office space or an industrial building in a residential area How does the assignment of property rights af..
Charles decides to go to an operabecause he does not want to waste the $100 he spent on the nonrefundable and nontransferable opear ticket, despite the fact that he would prefer to forgo the opera and go to a concert with Bette on the same night.
. Show how the Fed would increase M1 by 1 million dollars by changing the reserve ratio. Show how the Fed would increase M1 by 1 million dollars through open market operation.
For many years, your company has been protected through patents, Technological change and introduction of new products have been slow.
What happens to the price of bonds when the Fed sells bonds? What happens to the interest rate? What happens to the money supply?
Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..
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