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What happens in a perfectly competitive industry when economic profit is greater than zero?
a) existing firms may expand their operations
b) firms may move along their LRAC curves to new outputs
c) new firms may enter the industry and all of the above
d) there may be pressure on the market price to fall
Why do farmers landowners have an incentive to maintain the productivity of their land over time.
At prompting of United States, Japan relaxed restrictions and allowed companies to invest anywhere in world. What effect do you think this had on yen/dollar exchange rate and trade balance between two countries.
Find the future worth in year 10 of a periodic investment that starts at $8300 in year 1, increases to $8988 in year 2, and increases by the same percentage each subsequent year. The interest rate is 4% per year.
Use the midpoint method to Compute your cost elasticity of demand as the cost of DVD's
If the actual price in this market were below the equilibrium price, illustrate what would drive the market toward the equilibrium.
q1. assume that an investor is risk-neutral i.e. suppose that an investor always chooses the investment with superior
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
Consider a firm for which production depends on two normal inputs, labor and capital, that are not perfect complements. Initially the firm faces market prices of w = 10 and r = 8, for labor and capital. These prices then shift to
A manufacturing company leases a machine for $31,000 per year. Each unit produced costs $36 in labor and $65 in materials. To break even, 21,000 units must be sold. What is the price of the product?
if la jolla could obtain additional of the white wine, should they do so. if so how much should they be willing to pay for each additional gallon and how many additional gallons would they want to purchased
The chance of someone in the family getting sick over the relevant time period is 20%. What is the expected value of V over the vacation?
Assume that Densa Inc. falls 10 percent short of producing the profit maximizing output. Would a higher product price lead to greater output
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