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Describe a specific tariff, an ad valorem tariff, and a compound tariff. What are the advantages and disadvantages of each?
Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.
Quickcare is a health care franchise. It charges $150 per physical exam. Fixed cost is $50,000 and variable cost is $55 per exam. To improve margin, clinic will increase price to $175. What should Quickcare's decision be, assuming that this price inc..
What happens to hours of work when non-labor income decreases? Does such a non-labor income change generate a substitution effect? Why might we expect welfare programs create work disincentives? What happens to the probability that a particular perso..
Illustrate what is the average inflation rate. Elucidate how would that affect the inflation rate.
Suppose that the current international price of wheat is $6 per bushel and that the United States is currently exporting 30 million bushels per year. If the United States suddenly became a closed economy with respect to wheat, would the domestic pric..
A pure competitive star industry consists of a large number of independent firms producing a standardized product A. determines the average cost function? Define the profit function for the company that is at an equilibrium position if we know,that t..
Calculate the marginal product of inputs x1, and x2. What is the ratio fo x1 to x2 required to produce the output in the cheapest way possible?
Ann’s preferences are represented by a utility function UA(x). Suppose one were to (colloquially) say that Carol has more “sensitive preferences” than Ann: her utility function UC (x) satisfies UC (x) = 2UA(x). Prove that for every choice set, Ann an..
q1. does a merger create any new value that wasnt there before? or is the merger done to lower afc and so atc? can we
What is the -maximing combination of labor and capital the firm should use? What is the resulting level of output? What is the economic profit? Is this the least costly way of of producing the profit-maximizing output?
When a computer firm is producing a level of output at which MC is greater than price, from society's standpoint the firm is producing too
Transaction cost is:
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