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1. When is the Best Time to Quit? Entrepreneurs are, by nature, stubborn. The late Dave Thomas, founder of Wendy’s Old Fashioned Hamburgers, often recounted how many of his friends and advisors recommended that he not start Wendy’s since the United States already had plenty of fast-food restaurants. Many new businesses fail, and knowing when to get out can be as important as when to keep going. Let’s say that you began a software design business after graduating from college. Your first year accounting profit is $25,000. Should you continue in the business or should you leave?
2. Related to Solved Problem 9.6 on page 297 In 2013, Sony announced that it had suffered losses selling televisions for the ninth straight year. Given the strong consumer demand for plasma, LCD, and LED television sets, shouldn’t Sony have been able to raise prices to earn a profit? Briefly explain.
Your solution to #7 is monopoly equilibrium price and quantity. It this outcome efficient in terms of maximizing the welfare of society? How might you prove that it is or is not? Calculate the Lerner Index for our monopolist
Suppose a single firm produces all of the output in an contestable market. The market inverse demand function is P=250-5Q and firm's cost function is c(Q)=6Q. Determine the firm's equilibrium price and corresponding function.
The Millennium Development Goals aims were to be achieved by 2015. A few will be met; many others will not. In either case despite great progress, poverty will remain a serious ongoing concern.
If the former, when and where was the latest ministerial meeting. If the latter, Elucidate the main features of the agreement.
What are the positive and negative aspects of budget deficits and surpluses?
Would the purchase of bonds by the Bank of Canada in 1.a) increase or decrease the potential for money creation? Explain in less than 5 lines.
Explain why, For a country having full employment of its resources, an increase in production of public sector goods can only be possible when there is reduction in production of say, consumer goods onlike for an economy undergoing recession
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
Market supply of labor The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours per week (QT) supplied to the market.
Suppose you just got the results for your economics midterm: you scored 90 points. You also learned that the class grades were distributed normally, the average was 75 points, and the top ten percentile cutoff was 95 points.
Describe the productivity change for every category also then determine the improvement for labor-hours, the typical standard for comparison.
What is the yield-to-maturity of a corporate bond with a 3-year maturity, 5 percent coupon (semiannual payments), and $1,000 face value if the bond sold for $978.30?
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