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Economies of Scale
A company faces the following costs at the respective production level in addition to its fixed costs of $50,000:
Quantity Marginal Cost Sale Price Marginal Return
1 $10,000 $20,000 $10,0002 $11,000 $ 20,000 $9,0003 $12,000 $20,000 $8,0004 $13,000 $20,000 $7,0005 $14,000 $20,000 $6,000
1) Calculate average total cost of each quantity. What happens to the Average Total Cost as output increases from 1 to 5?
A company can rent a machine for an all-inclusive rate of $125 per hour and on average makes use of such a machine for 1600 hours per year.
Employ the aggregate demand and supply model for the Australian economy, to analyse the consequences for real GDP and the general price level of the following scenarios. Assume that the economy operates in the intermediate range of the aggregate supp..
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;
Ann is offered three envelopes: A, B and C. She can choose any envelope, but she can only have one. Envelope A contains €50, B contains €45 and C contains €15. What is the opportunity cost of envelope A? How much consumer surplus does Ann get from en..
Is the demand for alcohol elastic or inelastic? Explain. How are your answers to Question 2 and 3 affected by the price elasticity of demand?
How do you know that one is required? For instance, do ever use a gap analysis at work or even in your personal life to create change?
Eco 101 Microeconomics - Define the price elasticity of demand and the price elasticity of supply. What is the difference between elastic and inelastic demand
Assume the exchange rate is allowed to fluctuate freely. Using the IS-LM-IP model, graphically illustrate and explain what effect an increase in government spending will have on the domestic economy. In your graphs, clearly label all curves and equil..
A Presidential candidate announces that he will propose that participation in the Social Security program become voluntary. That is, you can decide if you want to pay into the system when you work. If you decide not to pay in, you receive no benefits..
q1. compare the supply and demand conditions in both locations. how many people live in each place? what is the weather
Which of the following would cause a movement along the demand curve that is a change in the quantity demanded of donuts. Which of the following would cause a shift of the demand curve for donuts? Check all that apply
The Singapore system and the Whole Foods and State of Indiana systems share the. low out-of-pocket expenses but not the forced savings accounts.
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