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The cost data below are from the Acme Pizza Company. Fill in the information on the firm's total costs, marginal costs, average total costs, and average variable costs. Draw the total cost curve on one graph. On another graph, draw the marginal cost, average cost, and average variable cost curves. Are there output levels that exhibit increasing returns to scale? Are there output levels that display decreasing returns to scale?
Do you see a link between deficits and real interest rates? In what period does the relationship seem clearest? Do your answers change when the ten-year government bond interest rate is used instead of the three-month rate?
How many units will the consumer buy in total?
Chez Henri is a restaurant chain that operates in forty different cities. It employed an economist to determine the factors affecting the demand for its sales.
Suppose that average earnings by age group for bachelor's and Master's degree holders were as follows: Age group bachelor's Master's 23-24 $35,000 -- 25-29 40,000 $48,000 30-34 44,000 56,000 Suppose further that tuition and fees for the Master's p..
The weights of a population of parts made by a certain machine are normally distributed with a mean of ten pounds and a standard deviation of two pounds. What is the probability that a part of drawn at random from the machine weighs between 8 and..
Currently the wheels cost $4 each, but for a number of reasons the price will double. In order to produce the wheels themselves, Pramble would have to add to existing facilities at a cost of $800,000. It estimates that its unit cost of production ..
You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4,000 into the account. Three years after your last deposit.
Two companies, Company A and Company B, are deciding whether each should implement a new pricing strategy, which may or may not result in a price war. If both companies reduce (discount) their current prices, each company will end up with $175K in ..
Refugees with manufacturing skills from war-torn Bosnia and Kosovo are relocated to Tennessee.
With the assumption that A=1, and the share of labor in the national income is 1/2. Also K=120 million dollars and L= 10 million units and saving rate = 35% and the depreciation rate is 10%. How many periods it will take this economy to reach the ..
In Smalltown, the price of Twinkies fell from $0.80 to $0.70. As a result the quantity demanded of HoHo's decreased from 120 to 100. What would be the appropriate elasticity to compute
If reputations are important, which restaurant will have a greater incentive to offer good service-one that is part of a national chain (such as McDonald's or Burger King) or one that is locally owned?
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