SOLUTIONS TO END-OF-CHAPTER EXERCISES Chapter 2 Answers to Thinking Critically Questions: 1. When BMW closes down a plant for alterations it incurs the direct cost of those alterations‚ but there is also an indirect opportunity cost. If BMW closes down the plant then that means the plant is not producing automobiles which could be sold. Therefore‚ BMW’s opportunity cost is the profits that it could have earned by operating the plant. BMW incurs direct and indirect costs from shutting down the plant
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Abstract This paper is a general overview of Unix operating system. It starts by presenting a brief history of the early development of Unix. It concentrates on main aspects of Unix operating system. Key concepts covered are interactive multi-user operating systems‚ the design objectives of Unix‚ file-store organization‚ text processing and programming‚ the role of C programming language with regard to portability and reliable system software‚ process control (signals and fork)‚ error logging
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Pricing productsIntroduction Products and services have a price just as they have a value. Many non-profit and all profit-making organizations must also set prices. Pricing is controversial and goes by many names: Price is all around us. You pay rent for your apartment‚ tuition for your education. The airline‚ railway‚ taxi and bus companies charge you a/are; the local utilities call their price a rate; and the local bank charges you interest for the money you borrow ; the guest lecturer charges
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to Y = %∆X %∆Y PRICE ELASTICITY of DEMAND Definition: Price elasticity of demand is defined as the degree of responsiveness of the quantity demanded of a good to a change in its price‚ ceteris paribus‚ when all other factors on buyers’ plans are being unchanged. Formula: Calculating Price Elasticity of Demand Price elasticity of demand = Percentage change in quantity demanded
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1. Supply and Demand Economists Are a Joke? ________________________________________ A smarty-pants old story says that if you want a "learned economist‚" all you have to do is get a parrot and train the bird to squawk "supply and demand" in response to every question. Not fair‚ but ... It ’s true that the "theory of supply and demand" is a central part of economics. It is widely applicable‚ and also is a model of the way economists try to think most problems through‚ even when the theory of
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“Demand for Industrial Products is derived”. Explain and also how would you estimate the demand for compressor for refrigerators and air conditioners? Industrial marketing - definition Industrial marketing consists of all activities involved in marketing of products & services to organizations i.e. commercial enterprises‚ profit & not for profit institutions‚ government agencies‚ & resellers‚ that use products & services in the production of consumer or industrial goods & services‚ & to facilitate
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Week 2: Supply and Demand Ashley Lovitt ECO 212 March 31‚ 2013 Ed Delacruz Week 2: Supply and Demand There are many factors that play a role in the decisions that we make‚ especially in the economy. We could be faced with a decision to purchase a new home‚ or we could be faced with a decision that our child needs to go to college needs help paying for it. No matter what decision that we are faced with‚ the laws of supply and demand play and important role. I have been faced with many financial
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of a Firm Abstract This paper will give some insight of what the primary purpose or goal of a firm related to Milton Friedman. Profits‚ the surplus after the total costs are subtracted from revenues and of course after taxes are taking out will be the meaning. However‚ a firm and making a profit is not so cut and dry as you will see while ready my paper; society and the government has a hand in the firms staying in business so that the services and products that
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Part 2: Different Graphs (Visual Representation) used in the Real World (20 points) Find a current issue of The Wall Street Journal‚ Newsweek‚ Time‚ USA Today‚ Detroit Free Press‚ or other news media either in the Library or on-line. Find two different types of graphs or visual representations in the media. Please note: up to 10% of the total points could be deducted for shortcomings in sentence structure and mechanics for written responses. Attach a copy of each graph and cite in APA format
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Economies of Scale. If the firms produces in an industry with very high fixed costs‚ consumers can benefit from a large firm which can exploit economies of scale. Economies of scale lead to lower long run average costs and therefore give the potential of lower prices. Example: Would you want several firms providing tap water? Would it make sense to have 2-3 companies laying a network of water pipes and sewage systems across the country? No. It is better to have 1 firm. This is an example of an industry
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