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If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
Price is equal to the minimum long-run average cost of production.
Economic profit equals zero.
The value of the last unit of output produced is equal to the value of the resources used to produce it.
There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.
Insurers want to understand the Bay Area market for pediatric physician primary care services, to help decide the appropriate reimbursement rate for a pediatric primary care visit. Let the demand for pediatric visits be Q = 240 – P, and let the suppl..
Assuming that all of each firm's $16 fixed cost is sunk, what is a firm's short-run supply curve?. What is the short-run market supply curve? c. Determine the short-run equilibrium price and quantity in this industry.
Describe the economic growth scenario for U.S in the aftermath of the Great Recession. Explain. Explain this: how is economic growth affected by prevailing employment or unemployment levels in the economy?
Can you precisely show the calculus part of ramsey, olg, solow, endogenous growth theories in a very advanced level? With omitting unnecessary interpretations?
Suppose short-run output exceeds full potential output by 3 percent. According to Okun's law, what is the effect on unemployment? Assuming that inflationary expectations are constant, what is the effect on wages?
Suppose the demand for a movie ticket can be written as: If the cinema can offer tickets to a movie at zero marginal cost and can verify the purchaser’s age, what prices will be charged?
Suppose that it take $100,000 of steel to produce $2,000,000 of cars. If the nominal tariff on steel is 10% for the steel and 20%for cars, what is the effective rate of protection for the steel industry?
q1. a farmer determined a natural gas preserve on his property. he can extract the natural gas for a profit of 40 per
In the model for airline seat pricing, we studied the case of non-refundable tickets. What if the airline offers refundable business class tickets. You can buy a business class ticket and return it for a full refund if you do not fly.
a finn purchased some equipment at a price of $30000, the resulted in an annual net saving of $1000 per year during the 8 year period. at the end of the 8th year, the equipment was sold for $40000. assuming interest of 8%. did the equipment purcha..
An investor buys a 3% 20-year bond with a face value of $1000 for $1088. After receiving semi-annual dividend payments for 11 years, the investor decides to sell it. What would the sale price need to be to get an ROI of 4% per year compounded semi-an..
Assume that a pharmaceutical firm knows it can develop a new drug in 12 years at an upfront cost of $300m (incurred in year 1). If the firm undertakes the drug development project, it knows it can earn an annual profit of $200m in each year (starting..
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