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1. When a firm is in equilibrium , it is maximizing its profits, and can't make bigger profits by altering the price and output level for its product or service. How do we call this state?
2. The minimum return required to keep an entrepreneur in a particular line of production is called?
3. Since there is freedom of entry into the industry the surplus profits will attract new firms into the industry. what happens to both the supply quantity and the selling price?
A firm has a long-run cost function C1(y) = y^3 - 10y^2 + 30y. 1) Derive the firm's long-run average cost function 2) Derive the firm's long-run marginal cost function 3) Find the level of production with the lowest average cost 4) What is..
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
What is human capital, and how is it different from strictly the quantity of workers available for work? Name three ways to increase a nation's human capital. Is an increase in the size of the labor force also an increase in the human capital? Exp..
How much of a shortage or surplus of gasoline would result? Calculate the effects of this policy in terms of the changes in consumer surplus and producer surplus.
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of factors are cited to explain the large price inc..
Identify and describe the five sources of growth? Mention and explain four categories (types) of policies designed to promote growth.
In a market demand and supply equations are: The demand curve is given as: P = 68 - 2Q The supply curve is given as: P = 20 + 2Q. Assuming a perfectly competitive market, (Please show all your work):
How do these 4 concepts help to explain the law of demand (not explaining what they are but how the are related to law of demand):
You have calculated the expected NPV of project A to be $3,758 and that of project B to be $3,114. Can you be certain that you should recommend to your management to implement project A.
The # of people living on less than $1/day can be calculated using either market exchange rates or purchasing power exchange rates. Which will be larger? Why?
Price discrimination is the practice of charging different customers or groups of customers different prices for the same product. Why does price discrimination occur?
Suppose that the cost of living increases, thereby reducing the purchasing power of your income. If your money wage doesn't increase, you may work more hours because of this cost-of-living increase. Is this response predominantly an income effect ..
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