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There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $42 for every $600 invested. a.What is the percentage rate of return for these 298 dairies? (percent) B. The other 2 dairies have a cost structure that generates profits of $48 for every $400 invested. What is there percentage rate of return? (percent) Assuming that the normal rate of profit in the economy is 10 percent, and firms cannot copy each other's technology, will there be entry or exit?
Will the change in the number of firms affect the two that earn $48 for every $400 invested? ( yes or no)
What will be the rate of return earned by most firms in the industry in long-run equilibrium? (percent)
If firms can copy each other’s technology, what will be the rate of return eventually earned by all firms? (percent)
After viewing “An Education in Equality,” “Learning Begins at Home,” “A Military Education,” and “an Education,” write an organized and well-supported essay in which you make three observations about education and what impacts (and enhances) student ..
She tells her friend that the additional utility she would get from the second pair of sneakers is the same as the additional utility she would get from the fifth sweater.
A firm’s stockholders expect an 18% rate of return, and there is $22M in common stock and retained earnings. The ?rm has $9M in loans at an average rate of 8%. The firm has raised $14M by selling bonds at an average rate of 4%. What is the firm’s cos..
If you consider about the welfare of people via carbon emission, solution you think is to impose carbon. Would it be imposed on only private sector or both private and public sectors (since bus, train and plane are services of public sector, it also ..
Company A owns a patent with 15 years of remaining life. Company B is paying royalties to Company A for a license to the patent. It is estimated that royalty payments for the next 15 years will be $6,000 per year for the first 5 years, $8,000 per yea..
What is the present worth of this alternative? What is the annual cost of this alternative? What would its present worth be if its life was shortened to 25 years in order to compare it to another alternative of that length?
Governor Brown, from the state of Taxifornia, wants to increase sales taxes to bring in badly needed revenue to support state operations. He is looking at taxing various goods and services. Will the state tax revenue be greater if the state imposes a..
q1. explain how is the transfer cost s of an intermediate product find out d whena there is no exterior market for
You are comparing two investment options: you can purchase a 5-year bond with 10% coupon rate from company ABC or put the purchase price of the bond into a 5 year bank CD what pays 5% interest rate. Assuming that both investments have the same risk, ..
Which of the following goals of economic policymakers is generally false? They try to keep unemployment low to avoid leaving productive resources idle. They find low inflation desirable because it helps to keep unemployment under control. They want t..
Consider the role of discount rates in problems involving long time horizons. Suppose that a particular emission abatement strategy would result in a 50 billion reduction in damages 50 years into the future. Calculate the maximum amount that could be..
The Center for Medicare and Medical Services reported that there were 295,000 appeals for hospitalization and other Part A Medicare service. Compute the probability that none of the appeals will be successful. Compute the probability that exactly one..
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