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Assume that, in a perfectly competitive market at profit maximizing quantity, the market price is greater than average total cost. Describe what will happen to the number of companies, the market supply and the price of the good as we move from the short run to the long run.
Assume the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be ______
Suppose that you agree with the 16-percent rate of return proposed by the company. What factors need to be considered when setting rates designed to achieve this factor?
Suppose demand function has changed t0o Qd2 = 14-P. Find the new equilibrium price and quantity?
What is the difference between explicit and implicit costs? Which of the costs is most closely associated with opportunity costs and why?
Trade Restrictions Effects on Exchange Rates. Suppose that the Japanese government relaxes its controls on imports through Japanese firm.
Describe why a change in a firm's total fixed cost of production will shift its average total cost curve, but not its marginal cost curve.
What is the Marginal Rate of Transformation between sugar and tea?
Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Three machines are employed in isolated area. They each produce 2,000 units of output per month, the first requiring $20,000 in raw materials, the second $25,000, and third $28,000.
The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.
What is the machine's payback period? Compute net present value of machine if the cost of capital is 12%. Find out the expected internal rate of return for this machine?
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