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Average cost includes both fixed and variable costs, whereas the marginal costs include only variable costs. Therefore, marginal cost is never greater than the average cost."
(a) Comment on this statement.
(b) Explain your rationale by considering short-run production conditions.
Intel made large loyalty payments to HP in exchange for buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD. What incentive conflict was being ..
For several decades the labor force participation rate of women increased steadily but average hours worked per employed woman decreased steadily. Holding all other factors constant, could rising wage rates of women explain both phenomena? Explain.
The government wants to eliminate the inflationary gap by changing expenditures. What policy do you suggest? By how much will unemployment change after you policy has taken effect?
Use a diagram to explain the following: In the case of perfect substitutes, if the ratio of input prices equals the MRTS, will a unique solution to the firm's cost-minimization problem exist? In the case of perfect substitutes, if the ratio of input ..
Who are the stakeholders involved when it comes to the economic demands and society's expectations of post secondary education?
Was the movies examples "Real World" and presented without any particular bias? Was anything really memorable about the films?
Elucidate what the equilibrium interest rates for the federal funds rate the government bond rate also the private bond rate are also Illustrate what the equilibrium level of income is.
Suppose the US dollar depreciates against other currencies. Under the linked exchange rate system, Hong Kong pegs its nominal exchange rate to the US dollar. What would happen to the prices of goods and services (in terms of US dollars) in Hong Kong ..
Within the past 5 years a certain country ended its almost 2-year peg (fixed) of its own currency to the US dollar. What country was this? What year did it end? Why did it end its fix to the US dollar?
Supposes cost of consumer market basket rose from $200 in base year to $225 in current year. Calculate CPI in current year and percentage change in prices between base year and current year.
According to the classical model, to ensure that the economy reaches its potential output level, the government
Explain how do you think which these individuals would rank the utility of these similar expenses for themselves.
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