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Suppose there are n identical firms in a market. Each firm’s cost function is given by C = 648 + 8q2, where q is the amount that an individual firm produces. This means that an individual firm’s marginal cost is given by MC = 16q. Also, the market demand is given by P = 306 – 3Q, where Q is the total amount of the good produced by all of the firms combined. Therefore, Q = n*q. a) How much output will each firm produce? b) What will be the market price? c) How many firms will there be in long run equilibrium?
Specify whether you agree or disagree with the statement as it appears on the topic survey.
We are looking at the market place for good ABC. Supply and/or demand conditions are changing. Assume that after these changes occur, the equilibrium price increases while the equilibrium quantity decreases. Now, based on those possible changes suppl..
Senator Snodgrass says, “You economists say the economy is recovering from the recession but corporations are sitting on piles of cash and the unemployment rate is not declining. If the economy is really getting better, why aren’t more people getting..
Ki Airlines has determined that the price elasticity of demand for two customer segments (Business Class and Coach) is -1.50 and -1.75. Based on their expectations of profitability, Ki realizes the price of a Coach Seat should be $155 (one way). How ..
What is the minimum price at which the firm would be willing to supply a positive amount of output in the short run? Label this on your graph.
Illustrate what are the values of the tax-adjusted utilize cost of capital, the desired future capital stock also the desired level of investment
If the government imposes a tax on the production of cars, which of the following will occur in the market for cars.
Who are the stakeholders in this case, and what are their stakes? The ban received approval from the New York City Board of Health, but a state Supreme Court judge subsequently halted it. Mayor Bloomberg vowed to appeal. Irrespective of the legal wra..
The demand for Dunkin Donuts glazed doughnuts will change by Illustrate what percentage also in Illustrate what direction.
You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4000 into the account. Three years after your last deposit, you will..
Suppose a firm’s production function is given by Q = 2KL, where K is capital and L is labor. What is the marginal product of labor when 4 units of capital are employed? The marginal product of labor in the production of computer chips is 50 chips per..
q1. corporate profitability declined by 20 from 2008 to 2009. what performance would you use to trigger executive
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