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Q1. BMME5103 2 forgone entrepreneurial income to be $10,000 a year. She used $500,000 in savings that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $1,500,000. The costs for rent, supplies, and employees' salaries were $1,100,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions.
Q2. As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed?
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
Someone proposes to buy the farm from you for $1 million. Would you make more by selling the farm or keeping it
Firms raise capital from investors by issuing shares in the primary markets
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Think of any financial innovation in the past ten years
Similarities in the definitions of management quoted from authors of management textbooks
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
Use supply and demand model to explain the dramatic rise in the price of a college education.
Calculate gross national product and net national product
Determine the cost to the government of buying firms unsold units
The social security system levies a tax on workers and pays benefits to the elderly. Suppose that Congress increases both the tax and benefit.
The biggest difference between Microsoft and software retailers is the market structure in which they operate.
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