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Caroline has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm’s website in exchange for someone doing their tax returns.
Which of the following principles of economic interaction best describes this scenario?
a. Markets allocate goods effectively.
b. When markets do not achieve efficiency, government intervention can improve overall welfare.
c. All costs are opportunity costs.
d. There are gains from trade.
What is the contribution margin per unit? What is the contribution margin ratio? What is the variable expense ratio? If sales increase to 1,001 units, what would be the increase in net operating income?
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Recalculate Q0, Q1, p0,..
Analyze a market environment with tacit collusion, including deterrents from entry.2. Evaluate the profitability of entering the market.3. Examine how the time horizon affects the profitability of entering the market.
In regard to developing countries, if American foreign policy makers have to choose between supporting an election that brings to power an anti-American government or supporting a dictator who is pro-American, which should they choose, and why? ? How..
Who are the stakeholders involved when it comes to the economic demands and society's expectations of post secondary education?
Suppose the government decides to increase taxes by $50billion and to increase transfer payments by $50 billion. Illustrate what effect would there be on aggregate demand.
Assume income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Now change income to $12 and show a demand curve for pizza.
Suppose that the American Heart Association has determined that pistachios are extremely heart healthy and can lower bad cholesterol levels. Is the information likely to cause a shift in demand or supply? What will happen to price?
If economy has full flexible prices and demand unexpectedly increases you would expect that the economy’s real GDP would tend to Increase, Decrease. Remain the same? What happens when demand fluctuates lower than expected? What happens when demand fl..
How do such policies impact product price and industry output and employment? Are these kinds of policies easy to implement in practice? How has globalization of production affected our ability to control pollution?
After bad experiences with a flexible exchange rate, the small open economy of Rivendell decides to fix it exchange rate. Suppose the economy of Rivendell has reached the long run equilibrium. Is trade policy more effective under a flexible exchange ..
Based on your own Internet research, track the changes in the Euro/USD exchange rate since the Euro was launched in 2002. Which currency has appreciated and which has depreciated over the past 13 years? Provide two reasons why this has occurred.
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