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If firms in a monopolistically competitive industry are making an economic profit, Select one: a. all of the answers are correct. b. price is higher than marginal cost. c. new firms will enter the industry. d. economic profit will fall in future periods.
Construct a demand curve from individuals who value a Chipotle burrito with values {$12, 10, 9, 8, 8, 8, 7, 7, 6, 6, 5, 4, 3, 3, 3, 2, 2, 1}. Identify the optimal single price, and the associated quantity and profit if the marginal cost of production..
We know that Keynes and Minsky both had a multipoint description of the trade, or business, cycle with Minsky being more detailed than Keynes. Using Keynes' elements of the trade cycle as major bullet points, as-sign Minsky's elements of the business..
If the central bank sells euro 1 million of bonds and banks reduce their borrowings from the central bank by euro 1 ?million, predict what will happen to the money supply.
If it makes sense that one type of labor can substitute for another in production, how can capital, a physical object, substitute for labor, a human being?
Supposed we include X1 in our single regression € Y = β0 + β1X1 + u , but we leave out X2, a variable that is negatively correlated with the included variable X1. X2 is a determinant of Y (the dependent variable), and the effect of X2 on Y is positiv..
Determine the cost to the government of buying firms unsold units
The demand for goods varies based on the change in the price of the goods. For example, if oatmeal costs less than cereal, consumers would buy more oatmeal for breakfast. However, the demand for inexpensive goods and services is not significantly aff..
If fixed costs increase to $1200, what will happen to equilibrium price and quantity.
Give 3 reasons explaining the differences in growth rate. Discuss 2 ways government can promote economic growth. Give reasons why economic growth is good or bad for the environment?
Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative B will cost $35,000 with an operating cost of $4,000 per year and a salvage value of $7,000 after 5 years. At an MA..
An amount, P, must be invested now to allow withdrawals of $900 per year for the next 13 years and to permit $320 to be withdrawn starting at the end of year 6 and continuing over the remainder of the 13-year period as the $320 increases by 6% per ye..
Your friend Gail is an electrician who does repair and installation work for small businesses and homeowners. She often has customers ask her if she will accept a credit card in payment for her services, but she has been reluctant to set up a credit ..
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