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To produce a recorded CD, q=1, a firm uses one blank disk, D=1, and the services of a recording machine, M=1, for one hour. Draw an isoquant for this production process. Explain the reason for its shape. (Hours of machine services on the vertical axis and disks on the horizontal axis.)
Suppose that fixed cost for a firm in the automobile industry is $5 billion (i.e., F = 5 billion) and that variable cost costs are equal to $17,000 per finished product (i.e., c = 17, 000). Calculate the equilibrium number of firms in the U.S. and Eu..
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Now use the diagram from part A) to show the new long-run equilibrium of the economy. (Assume there is no change in the long-run aggre..
Evalute any one economic model of such imperfect competition, and assess how well it explains the behaviour of real firms, and the results such behaviour might have upon the efficiency of resource allocation.
Operations manager estimates assembly time required for first two units to be 10.4 hours and 8.3 hours, respectively. What is appropriate learning curve.
Which of the following is an assumption of the monopoly model?
When a rival firm cuts its price, the best strategic response of the firm, in many cases, is to retaliate with a price cut of its own. What practical advices or tactics would you provide to business executives as to what they can do that won’t land t..
Explain what is happening to both marginal productivity of each additional worker and the marginal cost of each additional unit of output.
The statistcs shows that government antimonopoly policy has been applied more harshly to the textile industry than the automobile industry. Can you give an alternative explanation for the difference in the number of firms in the two industries?
Management in a Foreign Country Research business
Discuss the Current Economy of the US and/or World. Discuss issues such as: What is currently occuring? How is it affecting people and businesses. How is it affecting the local, regional, national, and world markets. What do you think the future will..
Elucidate why a currency appreciation does not improve a nation's balance of trade.
In a Solow-type economy, total national saving, St, is St = sYt - hKt. The extra term, -hKt, reflects the idea that when wealth (as measured by the capital stock) is higher, saving is lower. (Wealthier people have less need to save for the future.) F..
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