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Q. Howard Bowen is a large-scale cotton grower. The land as well as machinery he owns has a current market value of $4 million. Bowen owes his local bank $3 million. Last year Bowen sold $5 million worth of cotton. His variable operating costs were $4.5 million; accounting depreciation was $40,000, although the actual decline in value of Bowen's machinery was $60,000 last year. Bowen paid himself a salary of $50,000, which is not considered part of his variable operating costs. Interest on his bank loan was $400,000. If Bowen worked for another farmer or a local manufacturer, his annual income would be about $30,000. Bowen can invest any funds that would be derived, if the farm were sold, to earn 10 percent annually. (Ignore taxes.). Compute Bowen's accounting profits.
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
Coke could have followed the price per unit down, but it didn't. Total soft drink demand increased, and Pepsi took a larger share of the demand.
The cost leadership approach implicates competing by having a lower cost than one's competitors
Describe the international monetary system known as the Bretton Woods system, or the gold exchange standard that existed from the mid 1940s to the early 1970s.
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second Lawn is $12, and the cost of mowing the third lawn is $15.
Illustrate now have to lend out how much does this bank if it decides to hold only required reserves.
If today's production of capital goods exceeds the depreciation of capital.
Walmart founder Sam Walton amassed an enormous fortune in discounts retailing one of the most viciously competitive markets imaginable.
Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.
Suppose that there is a unit mass of consumers who are uniformly distributed on the segment[0,1]. Two firms are located on the line and sell identical products.
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