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A risk-averse manager is considering two projects. The first is to introduce a new product: the second is revamp the production facilities at the existing plant. There is 20 percent chance a rival will enter the market and an 80 percent chance it will not. If the rival enters, the firms will lose $20,000 if it introduces the new product, whereas revamping the production facilities will earn it $50,000 in profits. If the rival does not enter, the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do? Why?
The company's settlement obligations are expected to raise its average total cost per pack by about $60. Illustrate what effect will this have on its optimal price.
Discuss a scenario where either the supply or price of a good or service is intentionally limited by the government.
How these earnings differences have changed over the past half century, as well as what factors are responsible for these changes.
Which corporation's settlement obligations are expected to raise its standard total cost per pack by about $.60. Illustrate what effect with this have on its optimal price.
Illustrate what is the opportunity cost (in civilian output) of a defense buildup that raises military spending
Illustrate what is the marginal cost of the 1,000th packet. Is this firm making an economic profit, a normal profit, or an economic loss
Assume the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. Illustrate what is their consumption when it rains.
Assume that the society decided to reduce consumption also increase investment. Explain how would this change effect economic growth.
illustrate the effect of capital formation by comparing the production possibilities curves with the present time and one in ten years time, for two different eonomies, one with a high rate of capital formation, and the other with a low rate of ca..
the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, explain by how much could the total money supply in the economy expand in response to Tracy"s initial cash deposit of $500.
Illustrate what would the peso-dollar exchange rate be if purchasing-power parity holds. Explain how can the organization use technology to change this balance for an advantage.
Illustrate what is the dollar value of the deadweight loss when output level is produced? Illustrate what is the dollar value of the total surplus when output level is produced
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