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Q1. During a coffee-room debate among several young MBAs who had in recent times graduated, among all one of the young executives flatly stated, "The most this company can lose on its Brazilian division is the amount it has invested (its fixed costs)." Not everyone agreed with this statement. In which sense this statement is correct? In what conditions could it be false? Explain.
Q2. Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright cash transfer of similar price. Why do you imagine it is not converted into an explicit cash transfer program, thereby saving the cost of printing and redeeming food stamps?
Suppose that, for the population of all entering freshmen, the distribution of the number of correct answers would be normal with a variance of 250. what is the probability that sample variance would be less than 100?
Wall Street Journal costs $206, payable now, for a two-year subscription. Newspaper is published 252 days per year. What is a subscriber's cost per copy of newspaper, taking interest into account.
If GDP is increasing by 3% every year Explain how long will it take GDP to double. Given the same conditions above, Explain how long will it take Every Capita GDP to double if the population grows at 2%.
Does that face help explain why such governments would rather subsidize an industry’s export sales than its sales in the domestic market?
Illustrate what is the maximum price of capital at which the firm will still make nonnegative profits.
Discuss two reasons that government should intervene in the operation of free markets and give two examples of real-world government policies or programs motivated by these reasons.
Assume that the risk free rate is 4% (i.e. RF = 4% ) and the return on market portfolio is 10% (Rm = 10% ) use CAPM to calculate the cost of capital of Dell. Estimate Beta or systematic risk of Dell.
Illustrate how do they compare to the others on any single set of constitutional issues. Assume the store is open 360 days a year.
Illustrate what is the mechanism by which an aggregate demand recession is transmitted from one country to another.
Illustrate what would happen to the total employment, the size of the labor force, and the unemployment rate? Show the results graphically.
Anticipate how technology will transform business in the future. Give specific examples to support your response.
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
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