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A competitive firm estimates its average variable cost function to be
AVC = 125 - 0.21Q + 0.0007Q2 .
The firm's total fixed cost is $3,500.)
-At what level of output does the AVC reach its minimum? What is the AVC at this output level?
-Suppose the price of the product is P = $125. Determine the profit maximizing level of output? Compute the firm's profit. If the firm is losing money, should it produce? Explain.
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In the Heckscher-Ohlin model what generates comparative advantage? Which factor of production will oppose trade in the Heckscher-Ohlin model?
Next, consider the federal, state, and local government regulations applicable to this firm and discuss the following: (Be sure you explain your answers)
suppose that the total liabilities of a depository institution are transactions deposits equal to 2 billion. it has
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Presume a person has $80 to spend only on two products: x and y. X cost $4 each, and Y cost $1 each. This person has preferences for X and Y given by What is the utility-maximization bundle of this person?
Is the firm operating in short run or long run? Explain.
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