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Q1. "Total fixed cost or sunk cost is independent of quantity produced."
Assume a small firm has invested $10 million in total fixed cost also another $18 million in total variable cost. As the firm has started marketing its new product at a cost of $25.00 per unit; however, average variable cost of the product is $30.00. Should this firm shut down? Why or why not?
Q2. 1. Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals?
2. Why might failure to specialize Clarify why Neanderthal groups in difference areas did not trade? Remember that comparative advantage is the key basis for trade.
Assume to John Smith gets promoted to a job to cause two changes to occur simultaneously: John earns a higher wage also safer environment
Elucidate what impact will this change have on the price level, output, and employment in the short run in the United States.
Suppose the firms divide the market into two areas of equal size and assign each firm one of the areas. Each firm agrees to sell only in its assigned areas. Will the arrangement generate a successful cartel?
what is the expected economic life for this water pump and what is the minimum annual equivalent cost.
q1. assume a small nation has following statistics its consumption expenditure is 15 million investment is 2 million
Social Security and Medicare are in financial trouble. The money will run out for the future generations if something is not done shortly. In detail, explain how you would save both systems for the future generation.
As internet banking spreads, velocity begins to increase at a rate of 3 percent per year. What will happen to the rate of inflation? How could the ECB offset the impact on inflation.
Explain difference between nominal and real variables and give two examples of each. According to principle of monetary neutrality, which variables are affected by changes in quantity of money.
q1. what happened why did you leave the question and suddenly demand higher price?q2. how do i calculate the change in
What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?
Illustrate what does this outcome reveal about the size of the multiplier
After 1, 2, and 3 years, it will pay a dividend of $5.You expect to sell the stock after 3 years for $120. Is XYZ a good investment. Support your answer with Calculations.
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