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This week we examine the things businesses need to know about business costs and profit maximizing or, in a worse case, loss minimizing. In the process, we create a supply curve. Look around the stores and restaurants around you. Have you seen a lot of going out of business signs during the economic slump? GM and Chrysler filed for bankruptcy although both received bailout money. Discuss business profits that rely on fixed and variable costs and revenues. Can you give examples of the companies that have high pension costs? Why are companies using more technology input while reducing labor input? Why are the Average Cost Curves U-shaped? What is the Law of Diminishing Returns? Discuss a company's two short run options: 1. stay open or 2. shut down.
illustrate what will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources.
Illustrate what is the minimum product price at which the firm will operate in the short-run. Elucidate how many workers should the firm employ to maximize profits.
Illustrate what is the Pig Farm worth. Elucidate what is the minimum one-time payment Farmer A would accept to agree to restrict his land for residential use forever.
Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.
Elucidate relationship among production curves average product and marginal product also cost curves average variable cost, average total cost and marginal cost.
New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.
Elucidate why the equilibria found in part (a) are only short-run equilibria. What will happen in the long run.
Demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew. The mayo clinic in Minnesota is known for top-quality medical care.
Suppose that two UK government bonds have same face values with £100. One has an outstanding maturity of 2.5 years. Its coupon rate is 9.75% and coupons are paid semi-annually.
Did the economic recession we've experienced recently affect your organization
Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.
A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double. Elucidate how long will it take Mexico's real GDP per person to reach the level that the United States was at..
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