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Suppose a perfectly competitive firm produces 40 units of output per-period (e.g., daily) and sells all units for the market price of $6. If average fixed cost is $2, average variable cost is $1, and marginal cost is $6, then the firm:
i. is maximizing total profit by producing and selling 40 units of output
ii. earns a per-period total profit of $120
iii. earns a per-period total profit of $240
iv. should close down in the short run and suffer a loss equal to $80.
Suppose Jilbo can make 18 flower pots or 2 coffee mugs per day. Her cousin Jimbo can make 10 flower pots or 6 coffee mugs per day. What is the opportunity cost for Jimbo of producing 1 flower pot? or 10 flower pots? Who has the comparative advantage ..
Now let's say that the central bank of Columbia decides to do $300 in easy open market operations with Bank A only . After this open market operation is complete, calculate the maximum amount of money that Bank A can create on its own.
Bayer Schering Pharma AG, Germany owns the Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. The Alka-Seltzer Plus was a spin-o..
Briefly explain what inflation targeting is and list the five (5) main elements related to it. Then discuss the four (4) advantages and three (3) disadvantages of this type of monetary policy strategy.
Planning is critical for successful project management. Describe the various strategies you would use if you were responsible for managing the Webster University graduation ceremony in the spring.
In economy A, the LM curve is very steep, but not vertical (call this the “Friedman” economy) while in economy B, the LM curve is very flat (call this the “Keynesian” economy). The economies are identical in all other respects. What is the economic m..
A mechanical engineer must recommend an A/C system to a commercial building owner. The owner uses and MARR of 6%, but is not sure how long he will own the building. A conventional split system has a design life of 10 years, a cost of $47,000, and ann..
Suppose the production function for pasta is Q = 4kl ; What is the long-run optimal input combination when Q = 16 , r = 4 , and w = 36 and what is the long-run total cost function when r = 4 and w = 36
The demand schedule for JK Rowling's book is Q=3000-100P. The cost of having the book typeset is $10,000 and then the cost of printing each copy is $4. How many copies should JK Rowling print?
If the accounting profit for a firm is negative, the:
Why is market power an important element in the rule of reason treatment of tying contracts?
The initial cost of a pickup truck is $11289 and will have a salvage value of $3730 after five years. Maintenance is estimated to be a uniform gradient amount of $133 per year, with zero dollar for first year maintenance. The operation cost is estima..
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