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A monopoly is producing a level of output such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $10 per unit and is incurring average variable costs of $5 per unit and average total costs of $8 per unit. Given this information, it may be concluded that the firm:
A. is operating at maximum total profit
B. is operating at a loss that could be reduced by shutting down
C. is operating at a profit that could be increased by producing more output
D. is operating at a loss that is less than the loss incurred by shutting down
China has emerged as one of the fastest growing and most significant trading partners for the US. How does growth in China impact welfare in the US? Under what circumstances is Chinese growth good for US welfare and under what circumstances is US wel..
The inverse demand function for the market is P = 120 - 2Q. There are two firms: A and B. The cost for firm A are C(qA) = 18qA, and the costs for firm B are C(qB) = 18qB. Assume that both firms choose quantities simultaneously. What is each firm's be..
Suppose that in 2013, Global launches an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, price per share of Gl..
An economy has a total of 320 units of labor and 80 units of capital to use on the production of 2 goods. The production functions for the goods are a function of the labor and capital used in each process. Explain why at any point on the PPF, each f..
Assume that three years ago, you purchased a corporate bond that pays 5.50 percent. The purchase price was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 6.00 percent. What is the annual dollar amount of ..
Think of another good that you have purchased recently Be specific (e.g. is it breakfast cereal in general or Cheerio’s cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Would ..
When working with tribal people, keep in mind that:
You operate a small but popular and profitable restaurant/bar in a college town. Discuss at least two pricing strategies you can use to increase your revenues and analyze them in terms of their ability to generate additional profits.
q1. edison electric companys president has been arguing that residential electric rates need to be raised relative to
Describe the structural/functional differences between the models of the Capitalist (Political) Economy and the Feudal (Political) Economy
What impact does consumer spending have on the aggregate economy? How is it similar or different from the impact that government spending have on the aggregate economy?
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
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