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The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50. Each tree sells for a price of $65. The Carolina Christmas Tree Corporation’s total revenues are
a. $7,500. b. $25,000. c. $32,500. d. $67,500.
There is currently a surplus of allowances at the price of zero. What must be true of the relative positions of the market demand and supply curves? Explain. If the EPA were to allow firms to use allowances to emit sulfur dioxide as they did in the p..
A recent study indicates to the long-run average cost curve for cellular telecom companies are basically flat. Illustrate what do you expect to happen to industry output.
Illustrate what will be the most likely new equilibrium price level and output.
What is the firms revenue function? Graph this function. Give a plausible reason why a firms demand might look like this.
Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1, 000xy + 2, 000. Tammy’s utility function is U(x, y) = xy(1 − xy). Oral’s utility function is U(x, y) = −1/(10+ 2xy). Who has the same preferences as Jim? Who has the sam..
Val-lok Industries manufactures miniature fittings and valves. The company bought a new machine with $8,000 to improve process efficiency. After 3 year useful life, it will be sold out for $2,500. Prepare a table showing the depreciation expense and ..
Suppose the government were to provide a $2 per hour subsidy for families who purchases child care, regardless of work or wage status. This will.. Increase female labor force participation as take home pay for women will increase.
q.suppose a country the total holdings of banks were as followsrequired reserves 45 millionexcess reserves 15
Demand for microprocessors is given by P=35 - 5Q where Qis quantity of microchips in millions. The typical firm’s total cost of producing a chip is Ci=5qi where qi is the output of firm i. Suppose that one company acquires all the suppliers in the in..
The average rate of growth for slow-growth countries is around 2% per year, and for fast-growth, greater than 5% per year. Suppose the growth rate of the economy is 2%. The size of the economy roughly doubles every: Economic growth is important to u..
q.a purely spirited wheat farmer can sell any wheat he grows for 20 per bushel. his 5 acres of land show diminishing
Mr. Smith wishes to sell a bond that has a face value of $1000. The bond bears an interest rate (coupon rate) of 7.5%, with bond interest payable semiannually. Four years ago the bond was purchased at $900. At least a 9% annual return (APR) on the in..
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