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A firm whose price is below its average cost:
a. is earning zero accounting profit.
b. is earning positive economic profit.
c. is earning negative economic profit.
d. is just breaking even.
e. is earning zero economic profit.
A combine used for harvesting corn was purchased new 6 years ago for $400,000 with the intention of using it for its full asset life of 25 years (when its salvage value would be zero). It has a book value of $125,543 and can be sold for $130,000 now...
Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U is interpreted as the fraction of people employed and unemployed at any given point in time, respectively. What is the proba..
One supply side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand cu..
State whether the following will result in a change in demand or a change in quantity demanded. Explain.
Suppose that the annual growth in real income in Japan is expected to be between 2 and 3 percent and that income elasticity of demand for housing in Tokyo is estimated to be between 0.8 and 1.0 for rental units and between 0.7 and 1.5 for owner-occup..
Prior to the 2010 ACA what requirements did the Internal Revenue Service impose on tax exempt hospitals as a condition of maintaining their tax exempt status
Incomplete information frequently lowers the average quality of products and services exchanged in markets. This phenomenon, at times called the "lemons problem," Why efficiency in markets with incomplete information present lower than in those with..
There is a 1 percent chance that you will have healthcare bills of $100,000, a 19 percent chance that you will have healthcare bills of $10,000, a 60 percent chance that you will have healthcare bills of $500, and a 20 percent chance that you will ha..
q.if a firm faces a shortage of workers with very special skills it may decide to undertake necessary training itself.
The current account balance may fall after a real depreciation because
evaluate a plan designed to cut costs. Under plan, workers would be paid a fixed rate of $8/hour. Would you favour plan, Explain.
Utilize your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.
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