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A state owned company is providing electricity at the price of $0, 105 and faces the demand for electricity P = 1.255 - 0.001Q. The company has a cost function C(Q) = 100.625 + 0.1050Q. Commonwealth of Pennsylvania sells the firm, and now the firm's only goal is profit maximization.
What is the number of kilowatt hours of electricity produced and what is the price that company will charge?
How much more profit will this firm make as a result of privatization.
"The Neoclassical/Neoliberal Dogma," and chapter 6, "A Radical Economic Perspective," from Naming the System: Inequality and Work in the Global Economy by Michael D. Yates. Comparing the key arguments made by neoclassical and radical economists. T..
Assume good X is normal. Plot a graph to illustrate the income and substitution effects of an increase in PX, holding PY and I constant. Now suppose X is a Giffen good. Plot a graph to illustrate the income and substitution effects of an increase in ..
As an engineering manager, you want to recommend an automated robot like the one above for palletizing product in the small manufacturing plant. You also want to go slow and get this tested out over time, then scale up. You see this as a Life Cycle c..
Two shareholders of Bruce Co., Harry and Yolan Gilbert, were fightging management for control of the company. They asked for permission to inspect Bruce's stockholder list so they could either solicit support for their slate of directors at the upcom..
You decide to open a retirement account at your local bank that pays 7%/year/month (7% per year compounded monthly). For the next 20 years, you will deposit $500 per month into the account, with all deposits and withdrawals occurring at month’s end.
Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?
“In the long run, there is no difference between monopolistic competition and perfect competition.” Discuss whether this statement is true, false, or ambiguous with respect to the following criteria:
Sweden receives a great deal of attention from economists in part because
Indicate whether the following shocks are real shocks or aggregate demand shocks.
Business Week recently declared, “We have entered the Age of the Internet” and observed that when markets for goods or services gain access to Internet, more consumers and more businesses participate in the market. Use supply and demand analysis to p..
There have been significant discussions on the government's fiscal policy during the Great Recession. In particular, many did not like the government's actions in salvaging the auto industry in providing guaranteed loans to GM and Chrysler. What is y..
Describe the law of diminishing marginal utility. On what assumptions is this law based? Use diminishing marginal utility to explain why millionaires often do not have many homes, even if they can afford it. Explain the three characteristics of utili..
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