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# Macroeconomics

### If a stock is expected to pay an annual dividend of \$20 forever, what is the approximate present value of the stock, given that the discount rate is 5%?

If a stock is expected to pay an annual dividend of \$20 forever, what is the approximate present value of the stock, given that the discount rate is 5%? 300 40 400 30

### Total Revenue Curve

When the slope of the total revenue curve is equal to the slope of the total cost curve monopoly profit is maximized marginal revenue equals marginal cost marginal cost curve intersects the total average cost curve. the total cost curve is at its minimum both a and b are correct

### Goods and services

Which of the following is an example of how the question of "what goods and services to produce?" is answered by the command process? government subsidies for affordable housing laws regarding equal opportunity in employment government allowance for the deduction of interest payments on private mortgag

### Costs, Outputs, and Profits

Instructions for Homework #5: A Perfect Competitive Firm: Costs, Outputs, and Profits The following graph represents a perfect competitive firm operating in the short-run. Please answer the following questions based on the information from the graph. Please show all your work to get full credits. a. Please determine the firm

### Average fixed cost, MR=MC

1. Average fixed cost is: a.AC minus AVC b.TC divided by Q c.AVC minus MC d.TC minus TVC 2. Economists consider which of the following costs to be irrelevant to a short-run business decision? a.Opportunity cost b.Out of pocket cost c.Historical Cost d.Replacement Cost 3. When MR=MC a.Marginal profit is maximized

### Which of the following is a relevant cost?

Which of the following is a relevant cost? a. replacement cost b. sunk cost c. historical cost d. fixed cost e. all of the above are relevant.

### Which of the following cost relationships is not true?

Which of the following cost relationships is not true? a. AFC = AC - MC b. TVC = TC - TFC c. the change in TVC/the change in Q = MC d. the change in TC/ the change in Q = MC

### Decreasing Returns to Scale in the Long Run

In the long run, a firm is said to be experiencing decreasing returns to scale if a 10 percent increase in inputs results in: an increase in output from 100 to 110. a decrease in output from 100 to 90. an increase in output from 100 to 105. a decrease in output from 100 to 85.

### If a firm finds itself operating in Stage I, it implies that

If a firm finds itself operating in Stage I, it implies that variable inputs are extremely expensive. it overinvested in fixed capacity. it underinvested in fixed capacity. fixed inputs are extremely expensive.

### Function of a Perfect Substitution of Two Inputs

The perfect substitution of two inputs implies that two inputs can be substituted at a ratio of 1 to 1. one input can be substituted for another up to some point. two inputs can be substituted at some constant ratio. one input can be substituted for another.

### When total revenue increases from \$18,000 to \$26,000 when quantity increases from eight to ten, marginal revenue is equal to

When total revenue increases from \$18,000 to \$26,000 when quantity increases from eight to ten, marginal revenue is equal to \$3,000 \$4,000 \$8,000 \$2,600

### Which of the following is not a non-price determinant of demand?

Which of the following is not a non-price determinant of demand? tastes and preferences income technology future expectations

### Defining Business Risk

____________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm. structural fluctuational business financial

### Monopolist in publishing a textbook on Hong Kong economy.

3. SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy. Besides the Hong Kong market, SAR Publisher also sells this textbook in the US. Suppose SAR Publisher can produce this textbook at a constant marginal cost of \$20 per copy and the demand curves for the two markets are given by: QUS = 48, 000 - 600PU

### Open & closed economies

1. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. What is marginal propensity to save of this economy? *It looks as though enough information has not been provided.* 2. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a margina

### Explain why the MPC and the MPS must always add up to one.

MPC and MPS describe consumer's tendencies to fully utilize their income. MPC relates to consumption tendency while MPS to saving tendency.

### Explain the MPC and the MPS

Justify why the MPC and the MPS must always add up to one.

### Supply Chain Inventory Management Question

Give an personal example of a reverse logistics system you've experienced as a consumer. Were you satisfied with the cycle time of the process and what steps did the company take to guarantee your satisfaction. Finally, answer the question as to whether you are more likely to quit patronizing a company because of their reverse o

### Calculating the Standard Deviation and Coefficient of Variation

1) The XYZ Company has estimated expected cash flows for 1996 to be as follows: Probability Cash flow .10 \$120,000 .15 140,000 .50 150,000 .15 180,000 .10 210,000 a) Calculate the standard deviation b) Calculate the coefficient of variation.

### Calculating Profit Maximization & Cost Functions

Suppose there are three firms with the same individual demand function. This function is Q = 1,000 - 40P. Suppose each firm has a different cost function. These functions are: Firm 1: 4,000 + 5Q Firm 2: 3,000 + 5Q Firm 3: 3,000 + 7Q a) What price should each firm charge if it wants to maximize its profit (or minimize

### Opportunity cost for production

Let's say, country A and country B both consume and produce only food and clothing. Both countries use only labor to produce these two products. A worker in country A can produce 6 units of clothing or 10 units of food each day while a worker in country B can produce 4 units of clothing or 8 units of food. Would opportunity

### Dulles Toll Road Elasticity

The year is 2007, and the price elasticity of driving on the Dulles Toll Road is 1.6. The owners of the Dulles Toll Road raise the cost of a one way trip to \$8.50. The revenue from the toll increase is not as large as the owners forecasted. Should they have set a lower or higher toll? Higher, because demand is elastic

### Economics

A bookstore opens across the street from the University Book Store (UBS). The new store carries the same textbooks but offers a price 30 % lower than UBS. If the cross-elasticity is estimated to be 1.5, and UBS does not respond to its competition, how much of its sales is it going to lose?

### Economics Question

I need help with this question. I think the customer will carry the burden but not sure. I believe the answer has something to do with elasticity as well. Not sure how to tie it all together. Question: Who would bear the brunt of a national sales tax on tobacco products? Why?

### Calculating Quantity Demanded and Determining Demand Curve

Gurgling Springs, Inc., is a bottler of natural spring, Inc. is a bottler of natural springs water distributed throughout the New England states. Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains. Operating experience during the past year suggests the following demand fun

### What are the dangers inherent in the widening gap between the richest and the poorest worldwide?

I know of some different dangers, but I would like to find which danger out weighs the rest.

### Short-Run Firm Supply

Farm Fresh Inc supplies sweet peas to canneries located throughout the Mississippi river Valley Like many grain and commodity markets, the market for sweet peas is perfectly competitive. With \$250,000 in fixed costs, the company's total and marginal costs per ton (Q) are TC=4250,000 = \$200Q + \$0.02Q2 (2 = Square because In d

### What are the challenges for indigenization?

I can not find the meaning of indigenization or how to use it. I know it is derived from the word indigenous.

### Source Bias

New source bias can exist for stationary sources. Discuss why this bias leads to a solution that is not cost effective. What policies might eliminate this bias?

### Opportunity Cost for Profit Maximization

The New York Times, a profit maximizing newspaper, faces a downward-sloping demand schedule for advertisements. When advertising for itself in its own pages, (for example, an ad saying "READ MAUREEN DOWD IN THE SUNDAY TIMES"), is the opportunity cost of a given-size ad simply the price it charges its outside advertisers?