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"A profit maximising perfectly competitive firm should select the output level at which the difference between the marginal revenue and marginal cost is greatest. This is equivalent to selecting the output where the spread between total revenue and total cost is greatest".
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
Elucidate how the equilibrium quantity for the representative firm on the same graph.
q1. use the suitable formulas to create 2 new columns for total profit as well as profit margin correspondingly.
If the government faces an AD Shortfall of 100 billion dollars and finds that the marginal propensity to consume is 0.8, elucidate what will be the desired fiscal stimulus.
Find out the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level.
Assume that after the exchange of one permit, the marginal cost of abatement is for the firm that sold the permit for $170 also the marginal cost of the firm
Why manufacturer guarantees the computer for one year only. The cost of the extended warranty is $150. Analyze this proposition using the concepts you learned in the module on risk analysis.
Also the economy has G = $1100, I = $404, and XN = $15. Unemployment in the economy is currently 5.2% and inflation is 0.1%
What determines price elasticity of demand for a product. key determinants of price elasticity of demand are as follows: i. Availability of close substitutes- gas stations across street, very elastic.
How does subsidy affect consumer surplus, producer surplus, tax revenue and total surplus. Does a subsidy lead to a deadweight loss.
Are there any particular imported commodities that you or your firm rely on. Illustrate what has happened to the supply of these imports over the years.
The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
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