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A small company uses input labor L to generate an output Q, and the production function is Q=0.25L^2. The cost of labor L is $4 a unit. Find the company's total cost of producing output level Q.
Suppose you manage a wine cellar with fixed storage space and you have to choose when to sell each bottle of wine. The value of each bottle V(t) is increasing over time at a decreasing rate: V' (t) > 0 and V'' (t)
Discuss the difference between them and explain the managerial actions that can influence the firm profitability.
Adding a variable input (labor) to a fixed input (capital) will result in an increase in output: As a firm adds labor beyond the point of diminishing returns: ATC and AVC get closer together as quantity produced increases because:
The Diagram captures the situation in 1938. Chamberlain assesses the propability of hitler being amicable as p and that of him being beligerant as 1-p. Derive the condition on p that would support the signing of the Munich agreement and hitlers invas..
Calculate total economic surplus under monopoly also competition. The difference is the social cost of monopoly
Compute the CV and EV associated with this price increase. how would you interpret these.
Ever since you entered the door, your interviewee, Max Hugo, has been shuffling papers, looking at his watch, and drumming on his desk with his fingers..
Adverse selection can occur when: a. one party has information not available to the other party. b. incentives result in one party not reaching an agreement with the other party. c. all parties have full information. d. information is not full but bo..
Suppose a consumer's level of satisfaction is given by AB^2 and he/she has a total of $10 to spend on goods A and B. If the price of A is $1 and the price of B is $2, and assuming you can only purchase whole units (not fractional) of A and B, how man..
In case of conflicting IP rights, could firms bargain to attain efficient outcomes. Is re room for entry if consumer welfare is not being served.
Alco Metals just sold 2.5million shares through an IPO offering. The shares were offered at $25.50 a share and all shares were sold. The firm received a total of $67,250,000 for this issue. What was the spread? In a recent IPO, the Sausage Co. offere..
Such retailers can sell as many copies of Vista they such as at the prevailing marketplace price of $200.
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