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Suppose, ceteris paribus, a firm's fixed costs decrease. Indicate the changes to this firm's cost curves by choosing shift upward, shift downward, or remain unchanged for each prompt that follows:
a. The firm's AFC curve would _____ (shift upward / shift downward / remain unchanged)
b. The firm's MC curve would _____ (shift upward / shift downward / remain unchanged)
c. The firm's AVC curve would _____ (shift upward / shift downward / remain unchanged)
d. The firm's ATC curve would _____ (shift upward / shift downward / remain unchanged)
What are the roles of government in the market economy? Based the current economic conditions, to what extent should the government intervene in the market economy?
Plot the consumption function C = 150 + 0.7Y. Assuming no government sector, if planned investment spending is 250 billion dollars, what is the equilibrium level of aggregate output? Explain in full sentences, and show this equilibrium level of outpu..
"Price discrimination begins and ends with a firm having market knowledge that its customers/consumers have a willingness to pay different prices." How is this type of information collected and by who? how reliable is it?
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -6, while group 2’s is -3. Your marginal cost of producing the product is $70. Determine your optim..
Growth without diminishing productivity of capital suppose that the production function is Y=AK. What is the condition for the growth rate of capital per worker, ?what does the s*(y/k) curve look like? Discuss how your results relate to diminishing p..
Efficient regulation. Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 1000 people in the community, each of whom has an identical demand function given by. If the marginal cost of preservation..
What measures can families take, even in the absence of additional income or health services, to keep their children healthy? Explain
Assume the operations manager at the company you own prefers to put in low effort rather than high effort. In order the manager to exert high effort, his expected financial gain must be at least $60,000 higher than if he puts in low effort. Discuss t..
If the central bank increases bank reserves (or the monetary base) by $25,000, and the reserve requirement is 5%, then the total money supply increases by how much? Why? The best explanation will be mathematical and descriptive, with at least one app..
For the CES utility function U(x, z)= x^p + z^p. Derive expressions for the optimal levels of good x and good z as functions of the price of good x, z,pz and income, Y. For simplicity assume that the price of good z is normalized to be 1. What is the..
q1. assume which there is an increase in total factor productivity. in the search model of unemployment find out the
Simple random sampling uses a sample of size n from a population of size N to obtain data that can be used to make inferences about the characteristics of a population. Suppose that, from a population of 50 bank accounts, we want to take a random sam..
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