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Mary owns an office building (that has four floors) in the downtown area of a very busy city. Mary uses all four floors to run her real estate business. A friend tells Mary that using those four floors herself must be really expensive. Mary says that using those four floors cost her nothing because she owns the building.
Is Mary correct or not in her assertion? Please explain your reasoning.
How will a tax of $5 per unit produced affect the short- and long-run marginal and average cost curves? What about an annual license fee of $500 per year regardless of production level? (Make sure you address all possible average costs—e.g., fixed, v..
How does AT&T's production function related to its marginal product of labor? How is AT&T's marginal product of labor related to the value of its marginal?
ssume that the supply and demand curves in a market are described by the following equations. Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may us..
The minimum feasible long-run average cost for firms in a perfectly cempetitive industry is $58 per unit. IF every firm in the industry currently is producing an output consistent with a long-run equilibrium, calculate the marginal cost incurred by e..
Your firm’s research department has estimated your total revenues to be R(Q) = 600Q – 4Q2 and your total costs to be 60 + 2Q2. (Note that MB = 600 - 8Q and MC = 4Q). What level of Q maximized net benefits? What is marginal benefit at this level of Q?
Goods that are produced but not immediately sold: Unanticipated inflation is: Core inflation is defined as: Which of the following is not an example of the underground economy? Government consumption includes all: Money illusion occurs when we compar..
The city council of a small college town decides to regulate rents in order to reduce student living expenses. Suppose the annual market clearing rent for a two bedroom apartment has been $700 per month and that rents were expected to increase to $90..
What is the annual worth for option A if the initial cost is $100 and there is a uniform annual benefit of $10 for an infinite time frame? Interest rate is 8%. Do not put $ in answer.
Suppose the repeated application of a pesticide used on orange trees contaminates groundwater. The pesticide is applied annually in almost all of the orange groves throughout the world. Most orange growers regard the pesticide as a key input in their..
How and why did slavery develop in the colonies? Why did the founding fathers allow slavery to continue when they espoused freedom and liberty during the revolution? What was Thomas Jefferson’s goal in making the Louisiana Purchase? How did the Louis..
Imagine that Canada, the US, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for (a) international businesses, and (b) the flow of trade and investment between all three countries?
What’s the difference between how a Keynesian economist would sketch an AS curve and a Phillips curve, and how a neoclassical economist would sketch an AS curve and a Phillips curve? How is the shape of the different AS curves linked to the different..
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