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If price equals average total cost, economic profit will:
A. become large
B. equal marginal revenue
C. equal total cost
D. be zero
E. exceed output
Your friend Gail is an electrician who does repair and installation work for small businesses and homeowners. She often has customers ask her if she will accept a credit card in payment for her services, but she has been reluctant to set up a credit ..
Use the midpoint method to Compute your cost elasticity of demand as the cost of DVD's
Suppose the consumption behavior in problem 1 changes so that C=100+0.9Y, while I remains at 50. Is the equilibrium level of income higher or lower than it was in problem 1(a)? Calculate the new equilibrium level, Y’, to verify this. Now suppose Inve..
If a monopolist produces clear spring water at zero total cost, its total revenue will be maximized where,
From the scenario, identify the possible illegal or unethical activities activities in which the print shop boss plans to engage in, and identify the consequences on society from an economic point of view.
Assume the interest rate is 5.75 %. how much do you have to deposit each year make sure that 8,000 can be withdrawn for the 4 years?
q1. suppose we use two inputs lets say capital and labor and the price of capital is pk and the price of labor is pl.
One family of social dilemmas arises where a group of people are involved in some task that depends on the efforts of each of them. The strategy choices are work or shirk. In an effort dilemma, one persons shrinking places the burden of increased eff..
In your opinion, discuss when it makes sense to forego purchasing car insurance (assuming the state did not require it). In your answer, use moral hazard and risk aversion to describe your decision.
One common criticism in the optimal taxation literature is the specification of the social welfare function. The optimal taxation literature (I have the Mirrlees framework in mind) relies on first specifying a social welfare function. what kind of po..
To whatever extent you find the paternalistic and externality arguments convincing, what types of responses might they justify? Consider, for example, educational TV.
What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?
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