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The author of the news article titled "Econ Disecon Scale Schools" in the News folder notes that for years school districts have been consolidated to form fewer, bigger districts because people thought bigger districts would enable the production of education at a lower average total cost. The author argues that the opposite is true and advocates breaking up school districts into more numerous, smaller districts. What would have to be true about the school system's position on the LRATC curve for the author's proposal to work? Explain verbally and illustrate with an appropriate graph. (4)
At the current price level, would it be viable for the firm to increase the price level of its brand of coffee. Support your answer.
Which gamble would a risk-averse person most prefer? risk neutral-person? Risk-seeking person?
With respect to three goods- ice cream, green tea, and digital cameras, what does it mean when your preference for, and satisfaction. What is the difference between a “shift in demand” (an increase or decrease in demand) and a “change in the quantity..
Discuss the difference between tangible and intangible priorities and why ground rules are important when both parties are amenable to negotiate
Assume that you are going to start a small business of your own. Describe the business and, utilizing the concepts of this unit and the earlier units, discuss: What costs you would incur;
According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling ..
Suppose that marginal propensity to save is equal to 0.25, and the government increases its spending by $200 billion. This new increase in spending is financed by a fresh increase in taxes equal to $200 billion. As a result of this, GDP will:
Which three key concepts drive intra-industry trade? Explain how each of these three forces justifies intra-industry trade patterns!
What is the numerical value of the partial derivative of the function with respect to advertising spending (be sure to also include the + or – sign, but I do not want the symbol for this)? The amount budgeted for advertising spending is cut by $100,0..
Risk premium is
The demand function for a firm’s product is Q = P-3. The firm’s marginal cost of production is constant at MC(Q) = 12. (a) Calculate the elasticity of demand, as a function of Q. what is the firm’s profit-maximizing price? what is the firm’s profit-m..
Illustrate what is the marginal income product of hiring one low-skilled worker to clear woodland for one month.
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