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If the economy goes into recession, the demand of food might fall and also the price of the food will fall. The restaurant might be earning losses. In such a situation, the firm should reduce its variable cost of production by laying off workers, producing less raw materials in order to maximize profits. If the price falls below the average variable cost of production then the firm should shut its operations.
What will the end result be for the economy if that happens?
Lucinda Lacy purchased a foreclosed house today for $105,500 by making a down payment of 15% of the purchase price and paying closing costs of: Determine manually (handwritten), by trial and error, Lucinda’s rate of return, if she owns the house for ..
Co9mpute the percentage change in the Shares of Household Income of Quintiles between 1968 and 2008. Notice the dates are in reverse chronological order. Why do you think it has changed in the manner it has.
John lives for three periods. He is currently considering two alternative education-work options. Alternative 1: he can start working immediately, earning $100,000 in period 1, $110,000 in period 2, and $120,000 in period 3. Alternative 2: he can spe..
You are given a market data that says when the price of a bottle of aspirin is $10, the quantity demanded is 60 bottles. When the price is $8, the quantity demanded is 80 bottles. Can the price of elasticity of demand be calculated for aspirin? If so..
In the context of a Keynesian open-economy income model for a country, carefully explain the impact of each of the following autonomous events upon equilibrium income in the country and upon the country’s current account balance: an increase in domes..
Refer to the Real Estate data, which reports information of homes sold in the Goodyear, Arizona, area during the last year. Prepare a report on the selling prices of the homes.
Identify and discuss the most common pattern or stages involved in corporate violence. What are the worst specific consequences of corporate violence, and which claims about corporate violence seem least warranted? Which industries seem to have the w..
Assume a machine which has a useful life of only one year costs $2000. Assume, also, that net of such operating costs as power, taxes and so forth, additional revenue from output of this machine is expected to be $2300. What is rate of return on ..
What are your thoughts and experiences of special education law or children with disabilities in the education system in America? What do you think should be done to support students with disabilities in light of shrinking school budgets?
The topic of banking and its role in the economy has been an interest of many students in this class due to the experiences during the 2008 recession. Many find this chapter enlightening as a way to better understand the economic history of 2008/2009..
Elucidate what is the minimal compensation t that induce the buyer to accept the exclusivity contract. What is the maximal compensation that the monopolist is willing to oer to the buyer.
Consider an economy in which its residents spend 90% of each additional dollar they earn and the government increases its spending by $400. Calculate the total effect on output (or aggregate demand) The government reduces its spending by $4000 in an ..
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