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Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding, installation, and maintenance. Recently, the partners acquired special technology and know-how for winter grass installations and maintenance. They also added a tree cutting service as recent storms in the area had caused demand for this service to soar. One of the partners insists that the name of the business should change to Lawn and Tree Care, so that it better reflects the range of services and, thus, generates more customer interest, and thus contracts. The second partner wants to keep the old name and argues, %u201CWe have already paid for business cards, vehicle paint, signage, and ads in Yellow Pages%u201D. Evaluate the arguments of the two partners. For full points please also explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.
What are the advantages and disadvantages to a two-stage approach to negotians? Why do most negotiations for globl environmental regimes end up taking a two-stage approach?
In an effort to bring inflation down they had set interest rates at 5% in 2018. How should the federal resent react if they desire to bring inflation down to 3%. When will they achieve that goal? (Hint: maintain plenty of decimal places.)
Illustrate what is the probability that this worker is a college graduate. A non-college graduate. Are educational achievement and employment states independent
Estimate the relative importance of economies of scale and comparative advantage in causing the following:Much of the world's most expensive wine comes from France.
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
Why does government support patent process and why does government not encourages monopoly behaviour.
What are the determinants of demand? What happens to the demand curve when any of these determinants change? What is the difference between change in demand and change in quantity demanded?
Illustrate what would have been the welfare implications of a ban on oil imports.
Illustrate what is the proper role of unions. Why are they declining in membership and influence in the economy.
Explain how much would cumulative spending increase as a result. H ow much more did the average household spend on appliances, electronics, and furniture when it received the 2008 tax rebate.
Explain what will the total decrease in aggregate demand be as a result of the initial $12 billion decrease.
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