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A firm undergoes a learning curve over its first few years of existence
In its first year, its cost function is C(Q)= 128 + 3Q + 2q2 with MC= 3 + 4Q
In its second year, its cost function is C(Q)= 100 + 2Q + q2 with MC= 2 + 2Q
In its third year, its cost function is C(Q)= 64 + 2q2 with MC= 2Q
In each year the firm produces at its MES.
(a) Work out the MES in each year.
Both antritrust policy and industrial regulation deal with monopoly. Illustrate what distinguishes the two approaches. how does government decide to use one form of remedy rather than the other.
Determine marginal product of labor. Show whether or not the above production function exhibits diminishing marginal productivity of labor. Calculate the output (or production) elasticity with respect to labor. Determine the nature of the Return to S..
The salesman is willing to cut the price by 10% if you pay cash. What is the interest rate you would pay by financing?
if the original amount of loan is for $24000 and interest is 1/2% per month on the unpaid balance, explain how much will Kris's payments be.
Which of the following is the proper value to use as the " first cost" of the defender in a replacement analysis? Which of the following is a replacement repeatability assumption? When conducting a replacement analysis, which of the following equals..
Do you think perfect indexing is possible? Why or why not?
Suppose that an individual maximizes u(x,y)=x1^a x2^b (α, β > 0) subject to the budget constraint p1x1 + p2x2 = y. Solve for x1 and x2 (the optimal values of x1 and x2, which are the demands for x1 and x2) Are x1 and x2 , normal or inferior? Does dem..
A residential rental property is acquired during the first month of the taxable year, at a total cost (including transaction costs) of $1,200,000.
Suppose you had the opportunity to organize the perfect health care system. Explain how you would organize the financing method, reimbursement scheme, mode of production, and physician referral procedure. What is the DRG system? How are physicians cu..
German antitrust authorities have required Wal-Mart to raise its prices so that smaller German competitors can continue to stay in business. Is this really just a trade restriction that decreases U.S. exports? Discuss.
Many medical terms have similar spellings and pronunciations. In addition, abbreviations for medical terms are not standardized
If the prices of all products are raising at 5 percent per year and your employer gives you a 5 percent salary increase, are you better off, worse off, or equally well off in comparison with your situation a year ago? Use indifference curve analysis ..
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