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Below is hypothetical data for a manufacturer which possesses a fixed plant producing a commodity that requires only one variable input. Total Product is given. Total Fixed Cost is $220 per period. Units of the variable input cost $100 per unit of variable input.. Complete the following table. Units of Var. Input T.P. A.P. M.P. T.F.C. T.V.C. T.C. A.F.C. A.V.C. A.T.C. M.C
Hyperinflations occur when the government runs a large budget ________, which the central bank finances with a substantial monetary ________. According to the quantity theory of money and the Fisher effect, if the central bank increases the rate of m..
According to the production possibilities model, does a reduction in the unemployment rate cause the economy to grow (yes or no)? Explain why or why not. What about Improvement in technology.
If the demand elasticity is -2.42 and has a 10 percent decrease in price, what would happen to the quantity demanded. 1. decrease by 2.4 percent 2. increase by 24.2 percent 3. decrease by 24.2 percent 4. increase by 2.4 percent
The classical principle of monetary neutrality states that changes in the money supply do not influence ________ variables and is thought most applicable in the ________ run. According to the quantity theory of money, which variable in the quantity e..
Suppose we now care about the long run decisions of a firm that has a production function of the form q = 2L + 3K. Draw the isoquant that represents 20 units of output. If the price of each unit of labor is 1, the price of each unit of capital is 2 a..
Determine whether the following production function exhibits constant, increasing, or decreasing returns to scale
A small start-up company invested in a new plant with an initial cost of $10 million. Operating costs for the plant were $3 million per year for 7 years. There was a special one-time charge of $1 million in year 2 to correct unexpected equipment prob..
Suppose you have two goods, ice cream and macaroni(an inferior good to most people). show graphically what would happens when the price of the ice cream decreases and income increases.
Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..
Consider palletizer at a bottling plant that has a first cost of $141493, has operating and maintenance costs of $17669 per year, and an estimated net salvage value of $48604 at the end of 30 years. Assume an interest rate of 8%. What is the future w..
In the aggregate expenditure model, assume that the consumption function is given by C = 800 + 0.8 (Y - TP), that planned investment. I. equals 200, and that the government purchases, G, and taxes, TP, each equal 200. Assume that there is no import o..
Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest is $45,000 at the beginning of 2014. During 2014, the partnership's net loss is $60,000 and Wilson's share of the loss is $24..
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