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Figure 1 shows the demand curve, marginal revenue curve, and cost curves of La Bella Pizza, a firm in monopolistic competition.In the long run, how will the number of pizza producers change? What are the excess capacity and the deadweight loss created? Explain your answer.
a. Compute the quantity sold and elasticity at a price of $1, and also at a $2 price, assuming the given advertising budget. b. What is the advertising elasticity at a price of $2 Give an interpretation of the advertising coefficient.
The Licorice industry is competitive. Each firm produces 2 million strings of licorice per year. The strings have an average total cost of .20 cents each and they sell for .30 cents.
Suppose there are 100 indentical firms in the perfectly competitive notecard industry. Each firm has a short run total cost curve of the form STC= 1/300 q3 +?0.2q?^2+4q+10 and marginal cost is given by SMC = .01q^2 + .4q + 4
Two girder designs are under consideration for a bridge for a 1,200-foot crossing. The first is expected to result in a superstructure weight per foot of 22(S) + 800, where S is the span between piers. The second should result in superstructure we..
A security system costs $ 17000, and annual maintenance is $ 950. After 5 years, the salvage value of the system is $ 3000. The interest rate is 8 %. Determine the equivalent annual cost.
Suppose the velocity is constant and the economy's output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level next year if the FED keeps the money supply constant.
One of your professors has made you an offer you can't refuse. You are getting a four year research assistantship to earn your PhD after you receive your BS degree. The assistantship will pay you $2,600 per month starting in June, immediately afte..
Suppose that the government is committed to providing welfare eligibility to every family below the poverty line. If this government wishes to keep total spending to a minimum, which of the two views should it support?
Perform a macroeconomic analysis of the currency against US dollar over 5 year period ending in 2010.
Prepare a two- to three-page analysis by answering the questions below. Be sure to cite your references using APA format. Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place: BALANCE SHE..
Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.What is the per-worker production fun..
Project First Cost Annual Benefit A $15,000 $2,800 B $20,000 $4,200 C $10,000 $2,400 D $30,000 $6,200 ..
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