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Following are examples of typical economic decisions made by the managers of a firm. Determine whether each is an example of what, how, or for whom.
Should the company make its own spare parts or buy them from an outside vendor?
Should the company continue to service the equipment that it sells or ask customers to use independent repair companies?
Should a company expand its business to international markets or concentrate on the domestic market?
Barbara’s utility for 2 goods X and Y is given by U(x, y) = x^0.6y^0.4. Let I denote income and px and py denote the prices of good X and Y respectively. What is Barbara’s gain in consumer surplus if price of good X decreases from $20 to $15
Ethanol or ethyl alcohol is a motor fuel produced from sugarcane, corn or other sugar based feedstocks. In the United States, where ethanol production uses corn as feedstock, the Energy Policy Act requires that a minimum quantity of renewable fuels l..
If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits. When economic profit is positive,
When the Fed sells government securities:
Other things the same, if technology increases, then in the long run
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120.
Suppose that a car stalls on the railroad tracks because its carburetor is badly maintained. A train collides with the car because the train’s brakes are badly maintained. What is the proximate cause of the accident? Who had the “last clear chance” t..
The main arguement put forth by advocates of the singlr tax movement was that:
Research suggest that the relatively higher rate of growth of output per capita in rich countries between 1985 and 2009 was the result of which of the following?
Explain the benefit-based principle in taxation. Also explain how this principle is linked to the Lindhal equilibrium in local public finance choice
What market structure best describes the structure under which your organization operates? Identify one challenge and one opportunity that arise from this and how the firm might use these for strategic advantage.
Marge opens an oxygen bar in a building she owns. She utilized to rent the building to her brother in law.
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