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A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course, the owners have asked for your opinion. Draw 2 completely labeled graphs to help you explain the shutdown decision. One graph must be for the market as a whole, and the other must be for this store in particular. Assume that the store is losing money; however, explain why they may want to stay open for a little while longer. (Note: Your answer should include a written explanation of your graph.) I need the graphs included please.
Two alternative investment proposals are under consideration for a vacant owner by Urban Development Corporation. Plan A would require an immediate investment of $120,000 and first-year expenditure for property taxes, maintenance, and insurance of $4..
Illustrate what is the difference between the firm's short-run supply curve and its long-run supply curve? Make up an actual example to explain your answer.
Let customer's tastes change so that consumers now demand 100 more units at each price. When the cost of the good is $50, elucidate how many units of the good are demanded?
The Law of Supply suggests that the price-elasticity of supply is: If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
Illustrate what is the annual cost for chocolate syrup buffer stocks. Illustrate what impact does the variability of demand seem to have on buffer stock.
Two companies are deciding at what point to enter a market. The market lasts for four periods and companies simultaneously decide whether to enter in period 1, 2, 3, or 4, or not enter at all. Thus, the strategy set of a company is {1,2,3,4,do not en..
What are your thoughts about the role of international institutions ( WTO, IMF and World Bank) on providing order and reducing uncertainty in the global economy?
Which of the following boosted the ability of small companies selling traditional products to compete in the global market place?
Use axiom of transitivity to prove that indifference curves cannot touch each other. Use axiom of non-satiation to prove that indifference curves will always be downward sloping and utility functions will always be upward sloping. Use the axiom of di..
In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
Suppose that velocity is constant at 10, but the nominal money supply increases from $1.1 to $1.21 trillion. Elucidate what must happen to nominal output.
The Federal Reserve attempts to keep prices stable and unemployment low. Is there are a contradiction in these objectives? Describe the monetary policy tools that are available to the Federal Reserve to achieve these objectives.
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