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A shirt company spends $1,000 per week on rent for its factory. Each shirt made at the factory requires $2 worth of cloth and $8 worth of labour and energy. Answer the following questions assuming that the factory produces 500 shirts per week.
a) What is the average cost of a shirt?
b) What is the marginal cost of a shirt?
Describe the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits.
Sketch a graph which shows the lost gains from trade that result from having a monopoly.
Using an Edge worth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation.
Illustrate what are some criteria which Rollerblade should use to select countries to enter also. Illustrate what three or four countries meet these criteria best also are the most likely consolidates.
Illustrate what is now the effect on gold consumption also mining of an increased utilize of gold as money.
Illustrate what way the U.S trucking organization exemplified the capture theory hypothesis of government regulation prior.
Illustrate what is the Business Cycle. Be able to describe all of its parts such as peak, trough, long-term trend, etc.
Utilize this concept to construct an example in which a risk-averse individual prefers a gamble to a certain amount of money.
Elucidate how that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale
Co9mpute the percentage change in the Shares of Household Income of Quintiles between 1968 and 2008. Notice the dates are in reverse chronological order. Why do you think it has changed in the manner it has.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
Every may either 'cooperate' with its rival or 'cheat' in every period of play. If both cooperate, they earn $100 every in that period.
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