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Question 1: Briefly explain what a market will show if perfectly competitive firms produce at the minimum of the long-run average cost curve and explain why this happens. Briefly explain what the market will illustrate when perfectly competitive firms produce at the quantity where P = MC and explain why this happens.
Question 2: Briefly contrast when losses will be the smallest for a perfectly competitive firm based on total revenues with when losses for such a firm will be smallest based on marginal revenue.
Question 3: Briefly discuss the way in which a monopolist can seek out the profit-maximizing quantity of output.
During recent years, Microchips Corp. has enjoyed substantial economic profits derived from patents covering a wide range of inventions and innovations for microprocessors used in high-performance desktop computers. Calculate the profit-maximizing pr..
Create a list of 2 separate manufactured brands for automobiles and list the different makes and model for those brands. Write the analisys the manufacturer would offer the different chiuce to costumer?
Let's say the economy is growing too fast and the Treasury want to slow down the rate of expansion. How might it use fiscal policy to slow expansion?
illustrate what happens to economic output and inflation and explain why these changes take place.
Southern European countries (e.g., Spain, Greece, Italy, and Portugal) traditionally export low-tech manufactured items such as textiles, toys, and footwear that are in direct competition with inexpensive goods from China. Why are southern European c..
Recently, the U.S. Supreme Court ruled that cities could have voucher programs that give money directly to parents, and the parents can then choose between competing schools: public and private. The idea for promoting such a ruling was to create comp..
Find the annual after-tax rate of return of this investment. Assume a 35% tax rate applies. Contributed by D. P. Loucks, Cornell University
Suppose a ?rm’s cost function is given by C(Q) = Q^2 + 100 over the interval [0,10]. Sketch this function and then draw a secant line that connects the points 1 and 5. What is the range of this cost function? Is this function concave or convex? How d..
In what way does ABC (activity Based Costing) product costing differ from traditional product cost methods?
Suppose the government increases lump sum taxes.
Consider a worker who is paid a ?at rate w to perform a task. The worker gets to choose the amount of e?ort she exerts; the harder she works the more output she produces. In particular, her ?rm earns v for each unit of e?ort e the worker exerts. What..
Explain why you would be more or less willing to invest in the stock market under the following circumstances:
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