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Define and know how to calculate the following variables: fixed cost, variable costs, total cost, average fixed cost, average variable cost, average total cost, and marginal cost.
Find the equilibrium price and quantity after the shift of the demand curve.
What price would firm set to maximize profit. Compute profit and Consumer Surplus.In diagram given above blue shaded region is consumer surplus and green shaded region is deadweight loss.
If you were running race, and you passed the person in 2nd place, what place would you be in a now?
If w seats are allocated to wolverton supporters, each can be sold for 20- (w/2000) and if m seats are allocated to manteca supporters
Consider a firm with market power that sells suits. The firm has two types of customers, A and B. There are five times as many type-A customers as there are type-B customers. Type-A customers are willing to pay up to $100 for a coat and up to $50 for..
Explain how do efficiency techniques differ in short- versus long-run when attempting to maximize profits. Illustrate what specific incentives are used in your workplace to promote efficiency.
Insurance Consider a risk avers agent who owns an asset worth 100 USD. The agent can choose one of two actions: being cautious a1 or being negligent (a0). The agent’s payoff from having wealth w and taking action a is given by u(w_1,a_0 )=√x and u(w_..
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
Suppose the economy is below full employment output, if government purchases (G) increased by $100m, and assuming all else equal
Use the duration to calculate the effect on the bond's price of a 0.2% decrease in its yield.
The Economist described the plight of the unskilled worker in the rich world. "In America the problem takes the form of poverty wages, in Europe of unemployment. The underlying cause appears to be the same. There are more unskilled workers than jobs ..
Thoreau has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C, L) = CL. The household also has a home production technology summarized by a production function. Now suppose that there is a competitive fi..
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