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· Average Fixed Cost = $2
· Average Variable Cost = $1
· Marginal Revenue = $1.50
a) Other things constant, should your friend continue to operate in the winter months? Be sure to explain to her why she should or should not continue to operate.
Sally Stanford is buying an automobile that costs $12,000. She will pay $2000 immediately and the remaining $10,000 in four annual end-of-year principal payments of $2500 each
During the Great Depression, the US economy experienced many bank runs, to the point where people became unwilling to keep their money in banks, preferring to hold on to their cash.
$10,000 is exchanged into Swiss francs at an exchange rate of $1 = 2 SF to buy the bonds. How many dollars will the investor have after one year if the exchange rate is then $1 = 1.5 SF?
Compute the premerger Herfindahl-Hirschman index (HHI) for this market. Suppose that any two of these firms merge. What is the postmerger HHI.
Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.
Elucidate current global economic and political policies and their impact on business decisions. Apply critical thinking skills to analyze business situations
what are the implications for economic growth and development for these nations.
What are the four main components of aggregate demand? Which is the largest? Which is the smallest?
How might the bankruptcy of General Motors and Chrysler--and the government response--damage the efficiency of the U.S. economy?
Explain why in a monopolistic industry, if demand and cost curves are the same as those of a competitive industry, and if the demand curve has a negative slope and the supply curve has a positive slope, then monopoly output will be lower and price..
Determine what activities should we look for in order to estimate if an entrenched management is taking actions that would harm us as shareholders?
Assuming that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces. Calculate its profit-maximizing output and price and show just the Output number and Price per unit.
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