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Assume a competitive industry is in long-run equilibrium and firms in the industry are earning normal profits. Now assume that production technology improves such that average total costs decline by $5 a unit. Describe the process this industry will go through as it moves to a new long-run equilibrium.
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
Compare the magnitude of the percentage in the rental on capital with percentage change in wage in part 1. Use notation format.
Find firm's profit-maximizing price and quantity. Illustrate what is profit. firm's production manager claims that firm's average cost of production is minimized at an output of 40 units.
Divide the gain or loss by the number of years to maturity to calculate the average annual gain/loss. Calculate the yield to maturity on this bond.
Illustrate what recording fee would you advise Johnny to demand from the record company.
Illustrate that there are any extra costs or benefits due to this shift.
Assuming oranges operate in a perfectly competitive market, use a well-labeled demand and supply model to explain how market equilibrium price of oranges is determined.
How much is she actually paying the credit card company, including interest, when her credit card is paid off?
Clearly evalute at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Illustrate what is Fast Food's elasticity of demand. What does elastic, inelastic, or neither tell us about the elasticity of demand.
Explain why a weaker dollar could involve the UK balance of trade deficit.
What is amount of China's foreign reserves by end of 2004. What problem is China facing as it continues to build huge foreign reserves.
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