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Q. assume equilibrium price in a perfectly competitive market is $100 and within this market, a typical firms total cost curve is summarised as C(Q)=$1000+10Q+0.5Q2
Find expected profit maximizing output?
Find expected total revenue and profit?
What fraction x of your money should you invest in risky asset in order to maximize your utility. What happens if A is large.
It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are currently no taxes on cigarettes, to reduce cigarette purchases 5%, government would need to tax cigarettes enough t.:
Over the past year price inflation has been 10% but the price of a used ford escort has fallen from $6000 to $5000. The real price of a ford escort has fallen by Elucidate how much.
Explain how are presidential election outcomes related to the performance of the economy.
A basic assumption for comparing the straight-line production possibilities curves for two nations is that the production possibilities curves reflect.
neither person may trade away any water to the other for exchange for more bread. Set up an Edgeworth Box to depict this situation and elucidate why it is unlikely to be Pareto efficient.
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. Explain how would you describe this industry.
Make two income statements, are utilizing the traditional accounting approach another using the opportunity cost approach to determine the profit.
If you were a manager at PepsiCo, would you try to convince your colleagues while introducing the new soft drink is the most profitable strategy.
Government says that firm X must pay $1000 in taxes simply because it is in business of producing a good. What cost curves if any does this tax affect and does MC change if TC changes.
Now allow Foreign and Home to trade with each other, at zero transportation cost. Find out and draw a graph of equilibrium under free trade.
If the demand curve is much more inelastic than the supply curve, clarify whether buyers or sellers will shoulder more of the tax burden from a new tax placed on the sellers.
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