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A firm in a truely competitive mkt discovers that the price of its product is above its minimum AVC point but everywhere below its ATC. Then the firm: A) minimizes losses by producing at the minimum point of its AVC curve B) maximizes profits by producing where MR=ATC C) should close immediately D) continue producing in short run but leave industry in long run if problem persists
The economic principle that consumers are willing to consume more of a good when price is low is depicted by the:
Bill borrowed $10,000 to be repaid in quarterly instalments over the next 7 years. The interest rate he is being charged is 11.76% per year compounded quarterly. What is his quarterly payment?
According to the Keynesian view “Businesses will undertake all investment projects for which the expected rate of profit equals or exceeds the interest rate.” Explain what this means.
Bank Management is becoming increasingly complicated. What are the Four Major concerns of bank managers in ensuring the profitability of their operations? Which one do you believe is most important? Explain with examples.
Why is an increase in number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
Include both advantages and disadvantages in you argument. What are the economic effects of a depreciation of the US dollar on US trade balances?
Draw the domestic market for airplanes. Show the effect of the economy opening up to trade, with the world price below the equilibrium price in autarky. Draw and carefully explain how consumer surplus, producer surplus and total surplus are affected ..
q.consider an economy where there are n consumers each of them having one unit of available time. there is a
Assume you and your roommate have started a bagel deliver service on campus. List out some of your fixed costs and discuss why they are fixed.
"Burger King Gets Grilled" (USA Today, August 27, 2014, B1). Define and discuss usage of the HHI index and C4 index and what are two of their limitations (which would be very relevant in this case). Calculate "pseudo" HHI and C4 indices for worldwide..
Assume the government is running a budget deficit. Should government increase taxes to balance the budget. Should the government decrease spending to balance the budget. Elucidate the pros and cons of each action.
What is the implication of the efficiency wage theory for unemployment? In what way are piece rates, commissions, and royalties, profit sharing, and stock options substitutes for efficiency wages?
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