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Question: Suppose you're starting a small company selling lemonade from a stand. Suppose that you have fixed costs equal to $100 (e.g. the price of the lemonade stand, etc.) and variable costs equal to .02x2 .05x dollars, where x is the number of glasses of lemonade you want to make (the more glasses you make, the more it costs you). (a) Your total cost C(x) is the sum of your fixed and variable costs. Find a formula for C(x). (b) Find the marginal cost function MC(x). (c) Use the marginal cost to estimate the cost of the 6th glass of lemonade. Is this more or less than the actual cost of the 6th glass?
For months, Sammy has allowed his garbage to accumulate in his backyard, next to a school playground. Little Maria at age five, sees what to her promises to be a nice toy among the trash and runs into Sammy’s backyard during recess. Indicate the part..
Midwestern power companies generate much of their electricity by burning coal. Tall smokestacks, required because of concerns about local pollution, carry the sulfurous smoke high into the atmosphere. Give northeasterners the right to clean air. Give..
From one year to the next, a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK = 0.3 and aN = 0.7. How much did productivity contribute to economic growth..
Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today. Helen deposits $4000 today, and one year from now she deposits $1000. Each year she increases her deposit by $500 until she makes her last deposit on Rober..
By looking around this site, you should be able to find the market capitalization (E) as well as the ß for any publicly traded company.
If a firm applies the same discount rate to all projects for all of its divisions, the firm will incorrectly evaluate projects and will also become riskier over
International trade can have big effects on domestic markets. For both an import good and an export good. describe how opening up to international trade affects
What is a recessionary gap? What would be the appropriate fiscal policy to combat or offset one? What is an inflationary gap? What would be the appropriate fiscal policy to combat or offset one? Please answer the entire question for a good rating.
Both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of producing 1 sweater is 3 socks, and Caroline's opportunity cost of producing 1 sweater is 5 socks, then
What is social capital (capacity)? What is the difference between individual social capital and community social capital? What is the interrelationship
Comment on the following quotation: "One way that a minimum wage could result in expanded employment is if the government sets the minimum below the market equilibrium wage."
In the same market, three sellers (John, George, and Ringo) have the marginal cost (MC) schedules shown below.
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