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Q1. A perfectly competitive firm faces a market price of $10 for its output of X. it owns two plants, A also B, whose total costs areTC for firm A = 10 +2X + .25X^2TC for firm B = 15 +.4X +.1X^2
Explain how many units should each plant produce to maximize profit at which price?
Q2. A farmer owns a plot of ground also sells the right to pump crude oil from his land to a crude oil producer. The crude oil producer agrees to pay the farmer $20 a barrel for every barrel pumped from the farmer's land.
Will there be significant progress on the poverty front, because of an increase in GDP.
Explain how supreme as well as comparative advantages were used in your simulation.
Explain how would you expect each of the following events to affect the amount they save each month.
Home produced 450 bushels of pears also 1050 cellular phones. This year it produced 450 bushels of pears also 2000 cellular phone.
For each option calculates the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly.
You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left.
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
The cost leadership approach implicates competing by having a lower cost than one's competitors
Find the total quantity produced also every firm's profit in equilibrium. Express Illustrate what happens to these when Firm 1 changes its technology as above.
Explain how much he finishes up paying each provider every month. Explain how much customer extra he obtains with each provider.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
Explain where is the economy operating relative to its potential GDP
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