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Consider a market where supply and demand are given by QXS = -10 + PX and QXd = 56 - 2PX. Suppose the government imposes a price floor of $25, and agrees to purchase any and all units consumers do not buy at the floor price of $25 per unit.
a. Determine the cost to the government of buying firms' unsold units.
b. Compute the lost social welfare (deadweight loss) that stems from the $25 price floor.
Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?
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International trade is most likely to occur whenever a. one of the trading nations is self-sufficient b. all of the trading nations are self-sufficient c. one of the trading nations gains from trade d. each of the trading nations gains from trade
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suppose that you lend 1000 to a friend and your friend pay you back 1100 the nnext year.suppose the price that year
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