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A manufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. In the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. What should the manufacturer do?
How do we deter free riders? What is the cost (to society) of free riders? Give an example of a public good that has a large amount of free riders. How can we change this?
If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied?
Suppose that people derive utility from two goods---housing (H) and all other consumption goods(C). Show a typical consumer's allocation of his or her income between H and C.
Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.
Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions.
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
Behavioral finance is a brand-new field in analyzing prices in the market. In fact, most of the explanations come from psychological observations of daily lives. Provide a real world example that is not mentioned in class to show that people prefer t..
A firm plan to borrow $900 via issuing debt instruments. The firm can issue a simple loan, a fixed-payment loan or a coupon bond. If the interest rate is fixed at 8%, the face value of the coupon bond is $1000 and the fixed-payment loan has 5 payment..
The United States simultaneously limits imports of ethanol for fuel purposes also provides incentives for the utilize of ethanol in gasoline which raise the price of ethanol by about 15 percent.
q.suppose you go to buy a gm car. the car is priced at 24000. the salesperson offers you financing along free interest
Illustrate what techniques for changing organizational culture has Google used to form its culture.
Phelps-Dodge plans to expand capacity by purchasing equipment that will provide additional smelting capacity. The cost of the initial investment is expected to be $16 million. The company expects revenue to increase by $3.8 million per year after the..
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