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Discuss the types and relationships of costs within multiple markets. Include descriptions and formulas, as well as, comments as to their level of importance to a firm’s long-run and short-run production strategies. Take account of opportunity costs and profit calculations as well.
Discuss the short run and long run implications of the explanation for the aggregate economy.
What is the monetary certainty equivalent for the following gamble: gain $130 with probability 0.4, lose $320 with probability 0.6.
discuss the best fit of the multinational firm to its worldwide industry environment and the changing role of central headquarters as an organization expands into other countries.
What are the properties of a general competitive equilibrium? Why is it considered a state of efficiency? What does efficiency, in the sense of a Pareto Optimum, mean? Did he prove the existence of a general competitive equilibrium?
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Why is less concentration a problem for ..
What factors might these types of stores have in common behind their declines.
The equipment will have a maximum useful life of 5 years. If the company's MARR is 4% per year, when is the best time to abandon the equipment?
The third through sixth payments are $1000 greater than the first two. Determine the size of the first (end of period 1) payment.
Some economists and policymakers argue in favor of replacing the current income tax in the USA with consumption tax. What are your opinions on the issue? How do think such change impacts your income and expenditure pattern?
Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free? At what price would no caps be sold? Calculate the price elasticity of demand at a price of $6?
Actual GDP in a country is estimated to be 10% below potential GDP. Prices are virtually unchanged from one year ago. Unemployment is 12% of the labor force (much higher than the natural rate of unemployment). Which of the following policies would be..
To explore the implications of this view, suppose that an economy consumes all wage income and saves all capital income. Show that if the factors of production earn their marginal product, this economy reaches the Golden Rule level of capital.
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