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1. A firm has the following average cost ????=????????+????-????.
a. Find the stationary point and determine if it is a maximum or a minimum.
b. Find the marginal cost function.
2. A firm has the following demand function ??=????-??.???? and its total cost are defined by ????=????+??.
a. Find the maximum revenue.
b. Find the production to optimise the profit.
c. Verify if that the marginal revenue and marginal cost are the same at the profit maximising production level.
3. From the point of view of the firm, what decisions criteria have been found relevant in the analysis of production and profit.
Assume that in the previous problem you decide to make bi-weekly payments instead of a monthly payment (i.e. to pay half of the monthly amount every two weeks).
Regional Power owns 25 small power generating plants. It has contracted with Genco services to overhaul the power turbines of each of the plants. Th number of hours that Genco billed regional to complete the fourth turbine was 460.
1.What is the demand for currency? 2.What is the demand for checkable deposits? 3.What is the demand for reserves?
Your widgets are manufactured in two plants, one in Massachusetts and the other in Connecticut. Because of labor problems in Connecticut, you are forced to raise wages there, so that marginal costs in that plant increase. In response to this, shou..
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Cover the main predictions of the Heckscher-Ohlin model. Briefly discuss how this model has performed empirically and the extent to which its predictions have.
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In a perfectly competitive market with 2,000 firms, output is zero at prices less than $10. At prices greater than or equal to $10 and less than $20, each firm will produce 100 units of output. At any price greater than or equal to $20, each firm wil..
When price exceeds marginal cost, a profit-maximizing firm will decrease production.The marginal cost curve intersects the average total cost curve at the break-even point
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