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Some managers focus on the 'bottom line,' meaning net income. This week, please discuss some of the potential problems associated with such a myopic view. Give an historical example of a business or manager that suffered from excessively focusing on profits for either the company or themselves.
A monopoly has the market demand Q = 1000-1000P, with a marginal cost, MC = 0.28. What is the optimal price and quantity for perfect competition? What is the optimal price and quantity for monopoly?
The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.
An auto-service establishment has estimated its monthly cost function as follows: What price should the firm charge to realize the targeted profit? What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is: Q = 3000 ..
Suppose a firm's inverse demand curve find the firm's optimal quantity, price also profit by using the profit also marginal profit equations.
To what extent are deadweight losses relevant when deciding which side to take in the age-old debate between free-traders and protectionists?
What possible effect does investment in excess capacity by incumbents have in determining the extent to which investments by entrants are sunk?
Why does the government have to regulate the pollution that is put into the environment? What type of externality is pollution and why is society not able to bring about equilibrium in markets?
Does the existence of poverty imply that our socioeconomic system is unjust. Does the concentration of poverty in certain groups make it more unjust than it would be otherwise.
What evidence have you discovered that points to the Classical, Keynesian, and Monetarist theories being debated today? What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How does supply-side economics affec..
Suppose the Fed decided to purchase $50 billion worth of government securities in the open market. What impact would this action have on the economy? Specifically, answer the following questions:
How much profit will Phil earn by producing the profit maximizing output?
If the price of food falls by 10 percent and the quantity sold increases by 5 percent, then the price elasticity of demand in that range equals
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