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Suppose you own and operate a coffee shop in your hometown. Each year, you receive revenue of $200,000 from coffee sales, and it costs you $100,000 to obtain your raw materials. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the coffee shop, you could become an accountant and receive a yearly salary of $40,000. A clothing retailer, interested in expanding, has also offered to rent your shop space from you for $50,000 per year. How do you explain to your friends that despite making a profit, it is too costly for you to continue running your shop?
A bakery produces bread. The production function of bread is q(e)=24e, where is e is the baker’s effort. What number of loaves (i.e. q) maximizes the baker’s profits and what are the baker’s profits in this case? What number of loafs (i.e. q) maximiz..
It costs a company $35,000 to produce 500 graphing calculators. The company’s cost will be $35,050 if it produces an additional graphing calculator. If the company produces 500 graphing calculators then a. its average cost is greater than its margina..
The developing country uses the $100 bank balance to import $100 worth of food from the United States (US).
Compute the short- run and long- run results, explain the changes in the price and in the number of firms.
demand p30-2qsupply p4qequilibrium priceequilibrium quantityown price elasticity of demand equlilbriumconsumer
Some business owners make a statement something to the effect, "We're too busy to bother with strategy. We have to take care of the present." What might be wrong with their reasoning?
Expansionary monetary or fiscal policy would most likely be effective in reducing which type of unemployment? .Frictional unemployment
Assume the Bills have the chance to offer a season ticket that is good for all eight home games, a partial season ticket that is good.
May be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs).
What is meant by the incidence of a tax? Explain why the statutory and actual incidence of a tax often differs.
there are 100 producers of toasters. half of the producers are low quality i.e. their products will break with
Elucidate what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies which would be appropriate for addressing this situation.
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