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We make selections as customers every day. Opportunity cost is defined as a person's next best option or the cost of what you give up when you make a choice.
Think of a recent decision you made regarding your career. What was your opportunity cost for making that choice? What was your "next best alternative"?
For this DB assignment clearly identify you next best alternative because the cost of a decision is the net benefits of the next best alternative. Discuss the difficulty in making decisions as well as the different approaches we cant take to determine the "optimal decision." There are no right and wrong answers but there can be "good and bad explanations.
Suppose that a student who has completed her undergraduate degree and is planniing pursuing an MBA as a full time student. The cost of the second year MBA program she is planning is $45,000 for tuition.
Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7-Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?
For each of the following events, indicate whether the AD or the AS curve shifts. In brief describe the reasoning behind your choice.
Explain the process for obtaining an annual filing report for a corporation currently registered in California
A country with fixed quantities of resources is able to make any of the following combinations of bread and ovens.
what are the capital (k) and labor (L) elasticities of production? What do these elasticities tell you? Log Q=-1.5+.52log k+.65log L
Evaluate the cash flow for each year relevant to the analysis. Make a table of cash flows, by year. Compute the net present value of the proposed outpatient clinic. Should the administrator recommend the hospital's trustees that the clinic be built? ..
What is the machine's payback period? Compute net present value of machine if the cost of capital is 12%. Find out the expected internal rate of return for this machine?
How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
A monopoly has demand given through P=20,000-25Q, and costs given through C(Q)=100Q+25Q2. Find the profit maximizing level of price and output.
The demand for energy in the United States is often stated as persistently non-cyclical and not sensitive to both prices effects. Given such characteristics, explain the effect of each of the following on the demand or supply for gasoline.
Assume that the demand changes to QD = 600-2P and the supply function stays the same. Graph the new situation in Excel. Find the new equilibrium price and quantity, and show it on your graph.
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