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Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run? a. Price must be at least equal to average total cost. b. Price times quantity produced must be equal to or greater than total variable cost for some level of output or the firm will close down in the short run. c. Price may be equal to, greater than, or less than average total cost. d. Price must be equal to or greater than minimum average variable cost for the firm to continue producing
For which two bonds would you expect to generally pay the higher interest rate, a U.S. government bond or a municipal bond with the same term and issued by a creditworthy municipality and explain why?
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
Explain how the adverse inflation shock affects the AS curve. (ii) Discuss, using AD-AS diagram, what choices the Fed now must make regarding monetary policy.
q.1 what are the definitions of the following cost concepts fixed costs variable costs and total cost?2. give the
Assume that Wal-mart is the only employer of retail workers in a small town in Indiana. As a local non-discriminating monopsonist, Wal-mart faces a labor supply curve given by: E = 10W –100, where E is the number of workers hired each hour and w is t..
Acme Universal is a micro-cap that had a $3,000,000 drop in taxable income this year. Their drop in taxes was $1,030,000. For each of the following, determine the largest amount that meets the conditions given above.
Suppose the demand and supply functions of a good are specified as follows: QD= 600-2p and QS= -200 + 3P. Equilibrium price and quantity must be:
Monopoly and Antitrust Policy. What is the difference between holding a monopoly and monopolization? Which is illegal? Explain.
The market demand functions for corn is Qd = 15 – 2P, and the supply function of corn is Qs = 5P – 2.5. Suppose the government gives corn farmers a $0.70 subsidy per bushel of corn. What will be the effects on aggregate surplus, consumer surplus, and..
If the central bank (such as the fed in the us) of a country is steadily losing their foreign exchange reserves under a fixed exchange rates, then probably
Write a 3 pages with details on diversity on business in japan. with 5 updated references 2006 to 2015
Store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users.
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