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Now consider the preceding question in the longer term - with variable plant size.
(a) Compute the ATC for the small plant and large plant.
(b) By inspecting all three ATC curves, what can you say about scale economies over the range of output being considered?
1. Find the Cartel solution (total output and price) and compute the firms profits assuming equal split (each rm producing half of total output). 2. Find and draw on a graph the firms reaction functions.
You open a savings account to save for a new house. Everymonth you put $100 into a savings account which pays 5% interestcompounded monthly. At the end of each year you receive a $500bonus which you place directly into your "housefund".
Assuming that this firm has positive fixed costs, did the firm earn economic profits, economic losses, or zero economic profits yesterday?
Caleb bought a car for $6,900. He agreed on a five- year loan at a 5.4% interest rate.
To evaluate the two projects, you decide to use the company's weighted average cost of capital (WACC) for the less risky project (12 percent) and the WACC plus two points (14 percent) for the more risky project.
Now assume that Home has started trading with the Foreign country, which is exactly the same: it has the same demand curve and there is only one firm there that also produces apples at the marginal cost of $4 per kilo.
The EPA tests vehicles for gasoline mileage under stringent testing conditions. The testing for a particular make and model of mid-sized SUV involved 35 vehicles submitted by the manufacturer. Assume the vehicles submitted for testing constitute a..
Assume the graph below represents the market demand for a patented prescription drug together with the long run marginal cost and average cost functions for producing the drug. (note: the diagram assumes that at output levels over 50 million.
MILK- $1, 100 quarts. HONEY- $2 50 quarts. 2009: MILK- $1, 200 quarts. HONEY- $2, 100 quarts. 2010: MILK- $2, 200 quarts. HONEY- $4, 100 quarts. Compute a Nominal GDP and a Real GDP for each year using 2008 as the base year.
The following table is the pay off matrix for zero sum game. Estimate the each players dominated strategy of the following zero sum game?
What major polymers are present in the cell walls of the plants you described in (c)? What key research findings must be made in order to more efficiently produce low-cost energy from these polymers?
The Haverford Company is considering three types of plants to make a particular electronic device. Plant A is much more highly automated than plant B, which in turn is more highly automated than plant C. For each type of plant, average variable co..
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