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A firm's cost function is TCi = a + bqi + c qi2, where a, b and c are positive constants a. Find its marginal cost function, and show that MC is increasing for all q. b. Find its average total cost function. Now, prove that at the quantity that minim..
You run a small business that uses both capital and labor to produce your output. The machinery (capital) has a marginal cost equal to $25 per hour and a marginal product equal to 50 units per hour. The marginal cost and marginal product of capital a..
The manufacturers of information products typically
Below are the forecasted gross margins for company A's foreign subsidiary. As CFO, you are forecasting a 25% devaluation of the local currency. Please calculate the subsidiary's local currency exposure and its potential loss in the event of a 25% dev..
The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that
Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: Interest on company bonds-Shipping charges, Payment for raw materials, Real estate taxes, Executive salaries
For a firm to minimize its costs with more than one factor of production, for every factor, the
Explain what types of biases arise in the different approaches to understanding consumer demand and behavior.
Today we see a lot of activity within the international trade arena as the U.S. trade deficit has soared to a record high. Trade is designed to create bigger market opportunities, so why is the balance of trade so out of balance for the U.S.? Is it b..
An outflow of official reserve assets would be recorded as a
Intel made large loyalty payments to HP in exchange for buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD. What incentive conflict was being ..
Consider a hypothetical economy in which households spend $0.80 of each additional dollar of their after-tax income. The expenditure multiplier for this economy is ____. Suppose that this economy is experiencing a recession. The impact of a one-time ..
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