Q1. What would be the production possibility frontiers for Brazil and the United States? Without trade, the United States produces 45,000 units of clothing and 150,000 cans of soda.
Q2. A. Use the following information to calculate the value of the firm. Interest 15% and the firm is expected to grow at an annual rate of 7% (assume growth rate is constant) If the current profits of the firm are $150 million. Why is it important to discount future profits?
b. Define and explain the four types of efficiencies. What role do they play in
decision making?
Q3. Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations?