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Now consider what will happen in this industry in the very long run - with technological change. The total cost curve becomes TC = 225 + 10Q + (1/4)Q2 . The MC remains unchanged, and the minimum of the ATC now occurs at a value of $25.
(a) What is the price in the market in this new long run, and what quantity is traded?
(b) What quantity will each firm produce at this price?
(c) How many firms will there be in the industry?
Suppose that an initial $40 billion increase in investment spending expands GDP by $40 billion in the first round of the multiplier process. If GDP and consumption both rise by $36 billion in the second round of the process, what is the MPC in thi..
Suppose that the reserve requirement is 3% on the first 30 million of checkable deposits and 10% on the checkable deposits in excess of 30 million. (Amounts on the balance sheet are in millions of $) Assets- Reserves 15.9, Loans 150.0, Securities 3..
Estimate the OLS regression for pounds (y) vs. candy (x) - perform the Breusch-Pagan test for heteroskedasticity
Suppose a firm assesses its profit function as: X=profit X= -10-48Q+15Q^2-Q^3 a.) Compute the firm's profit for the output levels of (Q=2, 8, 14) b.) Drive an expression for the marginal profit. c.) Compute marginal profit at Q=2, 8, 14.
You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for $25,000, at a special sale price of $20,000.
Do the same for x2. After, solve the consumer's optimization problem using the Lagrange multiplier method. Interpret the first-order conditions in terms of the slope of budget constraint and indifference curves.
Remember that a good essay begins with an interesting introductory paragraph with a focusing thesis statement, then moves to body paragraphs that support the thesis using specific elements from the story (including commentary, analysis, reflection..
By inspecting the AP and MP curves, can you tell if you have drawn them correctly? Why?
Country A has soil that is suited to corn production and yields 135 bushels per acre. Country B has soil that is not suited for corn and yields only 45 bushels per acre. Country A has soil that is not suited for soybean production and yields 15 bu..
Is the company a member of one or more supply chains? If yes, can you identify the major members of the supply chain(s)?
Suppose a typical consumer buys 20 units of food and 10 units of clothes in the year 2307, when the price per unit of food is 100 and the price per unit of clothes is 200. In 2308, when the typical consumer buys 20 units of food
1. suppose z follows a standard normal distribution i.e. a normal distribution with mean 0 and variance 1.a. what is
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