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Question
What are the implications of the profit changes for expansion or contraction of the particular industries?
Draw the isocost line corresponding to a total cost of $10,000 is: 50 L + 100 K. TC = w L + r K, where L is the quantity of labour, K is the quantity of capital, w is the price of labour, and r is the price of capital. And draw the isoquant curve on ..
Why might regulatory agencies utilize labor more intensively than private firms? What will happen to the regulatory share of employment if the rate of growth of regulatory employment stays five times higher than overall employment growth?
Electrotech, a maker of household smoke detectors, buys resistors for its smoke alarms for $.15 each. The resistor manufacturer marks-up the resistors from $.10. Does the resistor manufacturer’s mark-up necessarily represent profit?
Goods added to inventories during a given year are:
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.
What's meant by the federal funds market and what's the federal funds rate?
This question asks you how an increase in productivity would change the steady state in a Solow model for education. Draw and label the graph. Now suppose that the country becomes more productive (better laws, new technologies, etc.). What curve or c..
What is the level of price, output, and amount of profit for an unregulated monopolist? (b) Using the data in the table, what are the price, output, and profit for a regulated monopolist that sets price equal to marginal cost compared with an unregul..
Graph a Monopoly. Compare the price, quantity, and ATC of a monopoly with a perfectly competitive firm. Who is more efficient and why?
In your own words, explain the farmer’s optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society’s perspective? Explain who benefits and is harmed under the free market solution. Explain who..
Would $200 spent by Americans in the Chinese stock marked be considered a part of the current or financial account?
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