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You're thinking about setting up a lemonade stand. The stand itself cost $240. The ingredients for each cup of lemonade cost $0.60. a. What is your fixed cost of doing business? What is your variable cost per cup? Construct a table showing your total cost, average total cost, and marginal cost for output levels varying from 0 to 10 gallons. (Hint : there are 12 cups in a gallon) Draw the three cost curves.
A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the firm's average total cost curve,
A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring 1 month after receipt of the $50,000. The stated interest rate is 6 percent compounded quarterly.
Suppose that in the beginning of the year, the exchange rate between US-dollar and the euro is exactly 2 $/EURO. At that time, a one-year US treasury bill yield an interest rate of 5%, while a similar German treasury bill yield 3%.
Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM curve, the I + G +EX curve, and the equilibrium level of real GDP. Illustrate the effect of an increase in the level of autonomous saving.
Assume an earning rate of 6% per year compounded monthly on your investments. How much must you place into your retirement plan monthly starting at the end of next month (month 1) and ending one month prior to the commencement of the retirement be..
Moe's income is $320 per week and he spends it on two goods, X and Y. Good X costs $8 and good Y costs $4 per unit. His utility function is U = 4.5XY. (a)Calculate Moe's utility-maximizing purchases of X and Y.
Find equilibrium price and equilibrium quantity for automobileindustry
Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout..
Each morning, the Roach Coach Express departs on it delivery rounds, bringing needed donuts, hot coffee and similar nourishment to corporate clients at various locations around Colorado Springs. Assume that the Roach Coach
use the following cost index data for each piece of equipmentto update the price that would be paid today original equipment cost indexwhen originallpurchased cost index today varnishbath ..
An asset with an original cost of $100,000 and a current book value of $20,000 is sold for $50,000 as part of a capital budgeting project. The company has a tax rate of 30%. What is the after-tax cash flow derived from the sale of the asset
Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of glass beads and trinkets. The 1991 estimate of the value of land on this island was $12 billion. What rate of return would the Indians have received if they had ret..
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