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For a perfectly competitive firm , suppose that all fixed cost is sunk and total fixed cost is 200 and average variable cost is 4 + 0.02q . Market price is $16 . Find the profit of each individual firm.
Two firm’s identical production costs, how do they maximize profits, how does this change if price discrimination is feasible or if the two firms have different costs of productions?
How might an employer seek to determine whether the individuals hired through agencies are in indentured servitude?
Draw an indifference map for a typical person’s preferences over five-dollar bills and tendollar bills using the vertical axis for five-dollar bills and the horizontal axis for ten-dollar bills. What is the marginal rate of substitution (MRS)?
Which of the following would cause the nominal exchange rate to appreciate?
Assuming that this month is a good representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work?
What fallacies of question-framing are made by the authors of the text?
Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants to increase its spending in order to stimulate the economy and avoid a recession. According to Keynesian theory, how much additional government spen..
Who is responsible for setting monetary policy in the United States. How is this group chosen?
At the Melbourne Cricket Ground, the venue for the Australian Foot- ball League (AFL) grand final and the Boxing Day test cricket match, seating is limited to 95,000 people. Seeing a golden opportunity to raise revenue, the Victorian state government..
The expected value with no survey is $62,000 and the EVPI is $4,000. What is the efficiency rating?
Assume the market for cough syrup is in equilibrium. Now, suppose the government imposes a price ceiling that is above the original equilibrium price. Illustrate what are the economic effects of the price ceiling?
Principles of Macroeconomics, Ch. 6: Supply, Demand, and Government Policies
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