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Q1. During the late 1980's wool prices increased considerably due in part to increased demand by China and the former Soviet Union. From 1977 to 1988, the price of wool for the worsted clothing rose from $3.67 to $5.81 per pound. Expecting that wool prices would remain high, wool producers raised a lot more sheep. Did this result in a shift to the right in the supply curve for wool? Why or why not?
Q2. Newspaper and soft drink are priced almost the same around $1 per unit by vending machines. Given the same unit price (value), how come a newspaper vending machine can be opened easily (i.e. take as many as you want) but a Coke vending machine is tough to open (i.e. drop one can at a time)? Please analyze it by marginal analysis for optimization.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
Wal-Mart is often criticized for importing many of the goods they sell. Why do they buy goods from foreign markets.
Your friend's monthly demand for minutes of calling is given by the equation 50, where p is the price of a minute.
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.
Each station's objective is to maximize its viewing audience, in order to maximize the station advertising revenue.
Brenda Johnson has used a preprinted form that she got from the internet to create her will.
A firm that finds it extremely expensive to monitor the output of each worker will likely pay its workers
Outline reasons why the marginal revenue product differs between workers in different jobs.
As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee
Assuming that your opportunity cost funds interest rate is 5% which refrigerator would you buy and why.
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