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A competitive firm has the following short-run cost function: C(q) = q3 - 8q2 + 30q + 5.
a. Find Me, AC, and AVC and sketch them on a graph.
b. At what range of prices will the firm supply zero output?
c. Identify the firm"s supply curve on your graph. d. At what price would the firm supply exactly 6 units of output?
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Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
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Suppose that raw materials (input R) are fixed at 10 units. Determine the number of units of input L that maximizes the total product function.
Illustrate with a graph how the PPF presents a strong rationale for the plausibility of the law of supply and supply and demand graphs indicating the change in equilibrium price and quantity.
What determines the vertical intercept of the Security Market Line (SML)? What determines its slope? And what will happen to an asset’s price if it initially plots onto a point above the SML?
If the demand for corn rise due to its use as an alternative energy source, what will happen to supply of corn's substitute such as soybean?
1 . Based on the game, how did the simulation show the use of monetary policy to control both unemployment and inflation? How do Federal Funds Rate affect unemployment and inflation based on your experience with the game?
Describe how the market economic system works to answer fundamental economic questions. Describe how this may differ from a command economic system.
Discuss the concepts of price transparency and information asymmetry and they apply to the diamond industry as a result of the entry of BlueNile. Name another industry where the Internet has had a similar impact.
What is the internal rate of return on this investment? Assume that the cab is paid for at the beginning of the ?rst year, but that the annual cash ?ows happen at the end of the year.
What is statistical discrimination and why does it occur, Provide an example of statistical dis-eliminations. Is statistical dionimination likely to persist overtime or will it eventuly disappear. Explain
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