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Identify which of the following statements is always true for a natural monopoly as the number of units produced (output) increases.
Marginal cost declines.
Average fixed cost declines.
Average fixed cost remains constant.
Average total cost falls while average fixed cost increases.
Average variable cost diminishes.
What is marginal rate of substitution between flour and rice. What is amount of rice and amount of flour he should be consumed to maximize his utility.
You decide to open an individual retirement account (IRA) at your local bank that pays 11%/year/year. At the end of each of the next 40 years, you will deposit $4,000 per year into the account (40 total deposits). 3 years after the last deposit, you ..
Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy?
Derive the aggregate demand curve and plot it to scale. Show all of your work. Calculate the effect of an increase in government spending on GDP. Is the effect larger or smaller than in the case where consumption does not depend on the interest rate?..
Discuss what happens to the demand and or supply and to the equilibrium price and quantity in the market for housing as population increases and at the same time the government releases more land for housing.
Illustrate what effect does the current supply and currently demand have on this product.
Which level of measurement conveys the most information? Which of the following is NOT an example of reliability? What is one way to obtain a criterion validity measurement?
In the economy of UNAM in 1968 exports were $45, GDP was $570, Government Spending was $85, Investment was $29 and Imports were $2. What was UNAM's consumption in 1968?
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis.
Write down the budget constraint of the representative consumer and Write down the maximization problem of the representative consumer and find labor supply
Suppose a monopolist has cost curve C(q) = 10 + 3q + 0.1q 2 and faces demand q = 12 ? p. Find the monopolist price and quantity. Return to the situation in (a) with only one market. What would be the monopolist profit?
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