Estimate and incorporate the uncertainties of inflation

Assignment Help Business Economics
Reference no: EM131426008

How should a firm estimate and incorporate the uncertainties of inflation/deflation into its overall practices (for example a firm must make long term investment to survive in the long term, so how should it make this decision)?

Reference no: EM131426008

Questions Cloud

Divisional costs of capital and investment decisions : (Divisional costs of capital and investment decisions?) Belton Oil and Gas Inc. is a? Houston-based independent oil and gas firm. In the past? Belton's managers have used a single firmwide cost of capital of 10 percent to evaluate new investments. Wh..
Discuss what economic theory predicts will happen : From an economic standpoint, evaluate the effect of a minimum wage on the market for low-wage labor. Include the following: Discuss what economic theory predicts will happen. Draw a supply and demand graph illustrating the effect of a minimum wage.
The monopolist charges the highest possible price : Explain why you agree or disagree with the following statements: “ All monopolies are created by the government.” “ The monopolist charges the highest possible price.” “ The monopolist never takes a loss.”
Calculate total revenue and marginal revenue : Use the following demand schedule for a monopolist to calculate total revenue and marginal revenue. For each price, indicate whether demand is elastic, unit elastic, or inelastic. Using the data from the demand schedule, graph the demand curve, the m..
Estimate and incorporate the uncertainties of inflation : How should a firm estimate and incorporate the uncertainties of inflation/deflation into its overall practices (for example a firm must make long term investment to survive in the long term, so how should it make this decision)?
Maximized his utility subject to his budget constraint : Charlie has a utility function U(A, B) = A + B, the price of apples is $3, and the price of bananas is $2. If Charlie’s income were $120, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budg..
Difference between microeconomics and macroeconomics : What is the difference between Microeconomics and Macroeconomics? and what are the similarities? Explain under what conditions it would be rational for a woman who could earn more than her husband in the labor market to specialize in housework. Why n..
The natural rate of unemployment is : If pollution is associated with the production of some good, then. The natural rate of unemployment is:
Mortgage-backed securities in the open market : Suppose the Federal Reserve buys 100 of mortgage-backed securities in the open market. What effect will this open market operation have on demand deposits and M1? Show all work. Assume the required reserve ratio is 10% and the currency drain is 40%. ..

Reviews

Write a Review

Business Economics Questions & Answers

  Determines the least cost combination of labor

Use an isocost-isoquant diagram to explain how a rm determines the least cost combination of labor and capital to produce a given level of output. What is true of the marginal product per dollar at the least cost combination of capital and labor? Why..

  How will it affect canadian gnp and gdp

Coca Cola uses the sugar in its bottling plant in Toronto, Canada and the resulting Cola is sold inCanada for $1000. How will this string of transactions affect U.S. GDP? How will it affectU.S. GNP? How will it affect Canadian GNP and GDP?

  Illustrate what is marginal cost of the unit of output

In the short run, a firm's total costs of producing 100 units of output equal $10,000. If it produces one more unit, its total costs will increase to $10,150. Illustrate what is marginal cost of the 101st unit of output.

  A linear negatively sloped demand function exhibits

A linear negatively sloped demand function exhibits:

  Can unrealistic assumptions provide useful outcomes

When do assumptions made in conjunction with economic theorizing have to be realistic. Can unrealistic assumptions provide useful outcomes.

  Increase the amount of education within the economy

The challenge that an economy will be facing is how to deal with an externality. You will find that an externality is a cost or benefit to a third party. A positive externality is a benefit to a third party and an example of that would be education. ..

  Price discriminating monopolist take to increase profits

Suppose the price at which a monopolist is selling its output is $8, and the marginal revenue associated with the last unit of output sold is $7. Suppose further that the marginal cost of producing the last unit of output sold is $6. Which of the fol..

  Discuss the foreign exchange market

Research and discuss the foreign exchange market in terms of both the value of the currency over time and any regulations affecting the currency for China in 2016.

  Q1 suppose that businesses buy a total of 170 billion of

q1. suppose that businesses buy a total of 170 billion of the four resources labor land capital and entrepreneurial

  An existing company is considering expanding

An existing company is considering expanding into a new product line that will use the same factory as its existing products.

  Explain why each of the following example is not a perfectyl

Explain why each of the following example is not a perfectyl compertitive industry

  What is the probability that the next customer pays

What is the probability (±0.001) that the next customer pays at least $30? What percent of customers who pay at least $30 pump premium? % (Round your answer to the nearest whole number.)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd