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Suppose that a firm faces increasing returns to scale at low levels of output and constant returns to scale at high levels of output. Draw the long run average cost curve implied by your diagram and explain the reason for its shape. 2.
What are the arguments in for and against proposed executive compensation package at Citigroup? Do you agree or disagree with the proposed package, and why or why not? What were the interests of institutional shareholders in this matter, and why did ..
At what price would no caps be sold? Calculate the price elasticity of demand at a price of $6
Net social benefits are maximized when:
Does the concept of technological efficiency permit us to determine at which point on an isoquant a firm should operate.
Calculate the average cost per passenger for the full flights and for the half full flights.
Consider a group of 10 friends who are considering going on a road trip. In determining whether or not to go, each friend considers both how much they would enjoy the trip and how much it will cost them. The cost of the trip will be $500 total, and w..
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations. Also, discuss the differences between economies of scale and economies of sco..
Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.
Cars are lasting longer. The expected number of miles traveled over a vehicle's life has risen to 180,000 miles in 2001 from 128,000 in 1977. However, new car buyers tend to keep their cars about the same length of time before trading them in. Using ..
Why is currency exchange stability an important goal of the Saudi Ministry of Commerce and Industry. What are the advantages of currency exchange stability for Saudi Arabia? Explain with examples. What are the disadvantages of currency exchange sta..
show the effects of an increase in the Chinese purchases of U.S. Treasury bonds. How do these purchases affect the value of the dollar and of the yuan?
What occurs when impact of change in tax structure? What limits ability of banks to make loans? Should an individual's investments be diversified? What is the relationship between unemployment and inflation?
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