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Draw and explain a production possibilities frontier for an economy that produces cars and computers. What happens to this frontier if a new technology was created which reduced the production cost of steel by 75%?
Find firm's profit-maximizing price and quantity. Illustrate what is profit. firm's production manager claims that firm's average cost of production is minimized at an output of 40 units.
Assuming that the current production rates are maintained at the three assembly plants, which alternative should management select?
How is Apple able to maintain high profit margins on its phones, while most Android phones struggle to be profitable? Select the answers that apply and give justification for your choices.
Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.
A unique aspect of a market economy is that consumers and firms change their behavior largely in response to:
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant?
Elucidate in detail how banks operate. Include a description of how banks generate profits.
You are considering two investment options. In option A, you have to invest $5,000 now and $1,000 three years from now. In option B, you have to invest $3,500 now, $1,500 a year from now and $1,000 three years from now. In both options, you receive f..
Compute the net present value using the numbers provided. Assume that annual cash flows occur at the end of the year.
An investor buys a 3% 20-year bond with a face value of $1000 for $1088. After receiving semi-annual dividend payments for 11 years, the investor decides to sell it. What would the sale price need to be to get an ROI of 4% per year compounded semi-an..
What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today's economy? Explain your answer.
Describe capital and labour productivity in engineering context and pharmaceutical industries in India. Discuss whether Indian Consumer goods industry is growing at the cost of future profitability.
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