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Suppose a company produces $5M worth of output and has sales of $2M each to domestic and foreign customers. It imports $1 M worth of raw material, pays its workers $3M in wages, pays its creditors $2M in interest, and has minus $1M in profits for its owners. This company’s operations add $4M to GDP whether measured by the value added approach, the expenditure approach, or the income approach.
Using appropriate diagrams and notations,carefully explain the relationship b/n elasticity, total revenue and marginal revenue. 2,discuss the uses of elasticity of demand.
Illustrate what price and quantity will prevail if the monopolist is not regulated. What price-output combination would exist with efficient pricing.
A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day, what is the expected annual savings of upgra..
If the above monopolist were to behave like a perfectly competitive firm (operating in the long run), determine its output. Illustrate what is the firm's Total Revenue.
1). List three businesses that can exist today, because of the World Wide Web that could not have existed before the advent of this technological communication system. 2). How has the World Wide Web supported the establishment and functioning of th..
Trading partners should specialize production in accordance with comparative advantage, then trade and diversify in consumption because
Explain what does efficiency prevail in the Gilroy labor market. If not, what is the size of the deadweight loss. you must use a diagram and show the appropriate values on it.
Suppose the demand for good X is Qdx=10-2Px + Py +M .the price of X is $1 the price of good Y is $10 and income is $100 given these prices and income how much of good X will be purchased?
What is the effect of an increase in the investment rate on the level of steady-state output per worker in the Solow model? What is the effect of an increase in the investment rate on the growth rate of output per worker in the model? Illustrate and ..
Explain how industrial regulation affects the market and the entities affected by industrial regulation in terms of market structure.
Find the equilibrium interest rate. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.
Assume that the officials in Ecoland have compiled the following information about their economy for last year:
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