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A firm produces leather shoes. Its internal demand for leather is P=40-Q. The firm also produces leather at marginal cost MC=Q. There is a competitive market for leather which provides leather at P=10.
a) How many shoes and how much leather should the firm produce?
b) Suppose the firm refuses to buy and sell leather on the market. How many shoes and how much leather should it produce?
c) Does this help or hurt profits? By how much?
To make ends meet your economics instructor runs a telephone service, 1-900-psychihelp. Incoming calls are directed to available 'psychic' who work from their home and utilize their own telephone (not to mention their very special 'psychic' talents.)..
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A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. what the concept of “ratio of..
q1. suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor
Explain market efficiency and identify and distinguish between the different types of market structures; compare and contrast the similarities and differences between their characteristics.
(a) What are some of the ethical issues that can arise from conflicts between the public- and privatesector roles?
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derive and graph the equation characterizing the firms average revence curve. Calculate the level of output to that maximizes total profit. Also calculate the resulting profit.
In class we discussed the calculation of GDP in the Coconut/Restaurant economy. In recitation on March 18, your TA discussed the calculation of GDP in the Jimmy Buffett economy. This question is similar to these (and is from a past midterm). It will ..
With what country does the United States have the largest current trade deficit?
Explain your answer thoroughly. Illustrate Monetary Policy Tools should the Federal Reserve use to fight inflation. Describe them thoroughly.
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