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I: Firms often face the problem of allocating an input in fixed supply among different products. Find the optimal crude oil allocation for the following example if the profit associated with square foot of fiber is cut to $0.375, while the profit associated with per gallon of gasoline stayed at $0.50.
II
Which of the following terms express a person who risks his or her financial resources by investing it in the hope of making a profit.
Derive total, average and marginal revenue schedules. Explain why your answer to part is an example of marginal analysis and optimizing behaviour in general.
If this price floor is implemented, how many units of pork will the government are forced to buy to keep the price at $2.25.
Illustrate what do you think are the defining characters of a science. does the study of the economy have these characteristics.
You do not incur any cost to produce goods you sell and thus your profit equals selling price if you make a sell. Or three sellers do not have any costs either.
Evaluate change in costs over period in real terms, first in 2004 dollars and m in 2005 dollars. Are your answers same. Explain why or why not.
Assume an economy produces only pizza also jeans. If some resources are unique in the construction of either pizzas or jeans.
What do you imagine about the interest on payday loans is too high or just right.
Illustrate what are the correesponding average tax rates in the regressive and progressive tax systems.
What happens to the profits of boat makers in short run. Illustrate what happens to the number of boat makers in the long run.
Suppose the market price of tuna is $3.50/pound. Explain how many fisherman should the company use if the daily wage rate is $100.
If country desires to smooth consumption, explain how much it should borrow in period 0. Illustrate what will level of consumption and trade balance is from then on.
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