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suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete . the firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced?
a. if this firm kept on increasing its output level, would ATC per bag ever increase? is this a decreasing-cost industry?
b. if you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? at that price, what would be the size of the firm's profit or loss? would the firm want to exit the industry?
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For each market (a. & b.) would it be to the producer's advantage (i.e. would TR increase) to raise or lower price? If P0 = $10.00 and Q0 = 100 units, justify your answers by applying the interpretations of those price-elasticities of demand on t..
Illustrate what is the likelihood of a second industrial revolution in underdeveloped countries today.
Suppose DJIA records the changes in prices of 4 stocks. Suppose initially the prices of these stocks are $40. $20, $60. and $80. What is the DJIA.
GDP per capita in a nation like Switzerland can have a low GDP per capita also still have a high standard of living.
You are told that the ratio of the actual output per worker of country j to the actual output per worker of country i is 0.3. You suspect that differences in savings rates (s) between the two countries may also explain the difference in the countr..
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The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
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