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A computer company’s cost function, which relates its average cost of production (AC) to its cumulative output in thousands of computers (CQ) and its plant size in terms of thousands of computers produced per year (Q), within the production range of 10,000 to 50,000 computers is given by
AC = 10 – 0.1(CQ) + 0.3(Q)
Is there a learning curve effect? Are there economies or diseconomies of scale? During its existence, the firm has produced a total of 40,000 computers and is producing 10,000 computers this year. Next year it plans to increase its production to 12,000 computers. Will its average cost increase or decrease? Explain.
The price level of a basket of goods in 2002 was $64.00. The price level of that same basket in 2003 was $68.00. If 2002 is the base year, what was the price index in 2003?
To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers? To what extent would increased government involvement with regard to safety affect the behavior of manufacturers? Does it seem ..
illustrtae what are some of the price and how do expectations inluence the effects of inflation.
What are some of the problems in using fixed weights to compute real GDP and the GDP price index? How does the BEA’s approach attempt to solve these problems?
In the United States, managed care is becoming an increasingly popular method of administering healthcare. It influences the clinical behavior of providers, as it combines the payment and delivery of healthcare into a single system, the purpose of..
The economics student knows that profit maximizing manager will produce quantity where marginal revenue equals marginal cost
Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.
The demand & supply curves for T shirts in Touristtown, United State, are given by the following equations:
A monopolist encounters the following demand curve: P=120-0.02Q-What is the level of production, price and total profits per week?
An engineer wishes to have $5 million by the time he retires in 40 years. Assuming 15% nominal interest, compounded continuously, what annual sum must he set aside?
The budget deficit projections in this chapter include net interest on the debt, which depends on interest rates. Use the loanable funds model to explain what is likely to happen to interest rates and interest payments if the size of the deficit cont..
Suppose a random sample of size is selected from a population. Find the value of the standard error of the mean.
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