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The shape of the long-run cost curve is determined by economies and diseconomies of scale. Contrast this curve with the short-run cost curve as it relates to increasing and diminishing marginal returns to labor.
Describe an industry that would meet the conditions of a perfectly competitive industry and how the individual firms would respond to an increase in the market demand for the product.
When developing short-run cost curves, it is assumed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses. Contrast this to the real world and why individual firms might experience different cost curves and different profits.
Assume that household consumption decision suddenly become less sensitive to change in the rate of interest.
Elucidate the relationship among scarcity, choice and opportunity cost in the context of managerial economics.
Explain the replacement effect, which may cause monopoly firms to innovate less rapidly.
Elucidate the effect of capital formation by compering the production possibility curve,at the present time and ten years in future, for two economies,one with a high and the other with a low rate of capital formation
Calculate the long run profit for a typical firm. These are the given equations: P= -1/4Q+20 P= 1/4Q
Evaluate the economic growth and development economists. Determine which economist you feel made the most significant contribution to economic theory.
Calculate the net cash flows for the year 0 and the years 1 thru 6. What is the NPV of the project? What is the modified internal rate of return for this project?
By examining the t-statistics associated with the regression coefficients, at the 5 percent significance level, which of the two independent variables are statistically different from zero?
Elucidate which of the following events would cause the price differences in these letters to get smaller.
Solve for the new equilibrium. Illustrate what happens to the price received by sellers, the price paid by buyers, and the quantity sold.
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country.
How will this affect output and unemployment in the long run? c) Use an AS-AD graph to show the transition from the short run to the long run.
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