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1) Suppose that a perfectly competitive firm has a short-run total cost function STC(Q) = 10 + 40Q + 0.5Q2.
a. Calculate the price below which the firm will not produce any output in the short run.
The average weekly earnings of bus drivers in a city are $950 with a standard deviation of $45. Assume that we select a random sample of 81 bus drivers.
Industries and business practices that are exempt from the antitrust laws are (Labor Unions, Public Utilities - electric, gas, and telephone companies, Professional Baseball, Cooperative activities among U.S. exporters, Hospitals, Public Transit a..
Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..
The maintenance price rose by 6% per year instead of the fixed amount what is the present value of the maintenance costs.
Illustrate what economic policy should be adopted by regions with persistent economic problems.
Suppose the Indiana Power Company wishes to maximize profits. The cost, demand and revenue functions have been determined and given below. Determine Indiana Power's profit maximizing price, output and level of profits. Q = output level, P = Pri..
Two days after his death, the Wall Street Journal ran a lengthy editorial tribute to Ronald Reagan, in the editors' estimation the most important president since FDR. In their paean to the fortieth president, Reagan gets credit for everything from..
A town has a bakery that sells bread and a cheese shop. It costs $1 to make a loaf of bread and $2 to make a pound of cheese. If the bakery's price for a loaf of bread is p1 and the cheese shop's price for a pound of cheese is p2.
The Euro has had led to positive growth in income and trade to non-EU countries. Based on this statement, how did the other countries benefit from the introduction of the Euro?
Assume if you scale up every price and nominal income in the same positive proportion Elucidate why this is true.
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
A married couple is considering purchasing a new sport utility vehicle (SUV) 5 years from now. They expect the SUV to cost $32,000 at the time of purchase.
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