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John is considering starting a t-shirt company. To do so would require the purchase of a machine to imprint the t-shirts. Cost = $50,000 with no resale value. A corporate "friend" has promised John a one-year contract for 20,000 shorts, if his price is "right". The marginal cost of producing a t-shirt is $1.50.
a. What is the lowest price John can offer for this contract?
b. At the end of the one-year contract, what will his "friend" offer John as the price for an extension of the deal?
How many acres should John choose to mow in order to maximize profit. Prevailing market price of lawn mowing is $20 per acre.
What is the company -level production function. You are currently using three printing presses and five employees to print 100 sales manuals per hour.
Illustrate what does this outcome reveal about the size of the multiplier
What does the change in his con- sumption reflect a substitution or an income effect.
illustrate what would take place in the US marketplace for loan able funds. In particular to US interest rate, savings also investment.
Elucidate how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand. Why do resource demand curve slope downward.
During Great Depression, businesspeople in United States were very pessimistic about future of economic growth and reluctant to increase investment spending even when interest rates fell. How did this limit potential for monetary policy to help al..
Suppose that in the year 2010 the number of births is temporarily high. Explain how does this baby boom affect the price of babysitting services in 2015 and2025.
What price will the firm charge in each market? Based solely on these two prices, which market has the higher price elasticity of demand? What will be this monopolist's total economic profit?
Elucidate the concept of the opportunity cost. your answer could consider opportunity cost in the context of the production possiblity curve.
Elucidate the equilibrium price and equilibrium quantity. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price.
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations.
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