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A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month. Its total revenues over the six warm months amount to $17,000, so that its profit for this period is $5,000. Its total revenues over the other six cold months are only $7,000, however, so that it loses $5,000 over those months, and just breaks even over the year as a whole. Wouldn't the restaurant do better by staying closed out of season?
Consider the following simple economy which consists of two industries, guns (1) and butter (2) and is characterized by the following input-output matrix. Suppose also that
Q. Demand for money and GDP? The demand for money also relies on the GDP as GDP is closely associated to national income. If you choose to hold a fixed proportion of your wealt
Explain the notion of the hidden momentum of population growth. Why is this an important concept for projecting future population trends in different developing nations?
What is the difference between money multiplier and credit multiplier
There are three firms in an economy: A, B, and C. Firm A buys $450 worth of goods from firm B and $260 worth of goods from firm C, and produces 260 units of output, which it sells
Discuss about the Keynesian economists The Keynesian economist A. W. Phillips developed short-run Phillips curve analysis in the 1950s. Phillips had researched the relationshi
Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.
ALL SELLERS MAY BE TEMPTED TO RAISE THE PRICE OF WHAT THEY SELL, BUT A NEGATIVE UNINTENDED EFFECT OF RAISING THE PRIE COULD BE______ IN UNITS SOLD LARGE ENOUGH TO _____THEIR TOTAL
I want a Fiscal policy in the School of rational expectations.
How do you calculate variable unit costs and total annual costs? Ans) Annual units sold, 1000. Raw materials yearly cost 650. Building rent yearly cost 9000. If sales volume enh
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