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If an analyst predicts that the benefits of a two-year project would be $100,000 in the middle of the first year and $110,000 in the middle of the second year, the scrap value at the end of the project's life is expected to be $20,000 upon resale, and the discount rate is 5%, how much is the present value of total benefits for the project?
World Class Manufacturing Operations has enjoyed rapid increase in sales & high operating profits. But now the firm faces potentially fierce competition from a large number of competitors as WCMO's important basic patents expire during the coming yea..
A purely competitive firm finds that the market price for its product is $20. It has a fixed cost of $100 and a variable cost of $10 per unit for the first 50 units and then $25 per unit for all succcessive units. Does price exceed average variable c..
Define what a market structure with one producer completely dominating the industry, leaving no room for any significant competitors. Barriers to entry tend to be virtually insurmountable.
The Internet boom of late 1990s was hailed as the four advent of a new economy: that would radically alter the face of business companies. By 2002, however, it was clear that new economy had not arrived on schedule.
If Hotel Bethlehem can charge two separate prices for two separate blocks of guests, what are the two prices they charge? how many rooms do they ll at each price? If Hotel Bethlehem only charges one price, how many rooms do they ll? What price do t..
If the MPC = 0.80 and taxes are increased by $1,000, the Keynesian model predicts the change in equilibrium GDP will be:
Barry earns $20 an hour for up to 40 hours of work per week. He is paid $30 an hour for every hour of work in excess of 40. There are 110 hours a week available for work. Draw Barry's budget line for these facts. Label completely.
Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries:
A typical university football programs requires alumni to join one of several booster club each club gets seats in different parts of the stadium before the person can buy season tickets. Ilustrtate what has this got to do with consumer surplus.
During the late 1980s and early 1990s, economic reforms initiated by Soviet President Mikhail Gorbachev began to raise consumer incomes; but the Soviet government continued to impose price ceilings on basic goods like food, clothing, household goo..
How does using interest rates as operating or intermediate targets lead to procyclical (reinforcing the cycle) monetary policy? How could policymakers use interest rates in the policy process and avoid pro-cyclical policy?
Explain how a consumer as well a business in the perfectly competitive arena maximize utility, discussing any similarities.
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