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Which of the following is (are) true?
A) To assess a firm's demand for capital we must determine the present value of marginal revenue products and marginal factor costs of capital.
B) A firm maximizes profit in the hiring of capital when the MRP of capital is greater than the MFC of capital. C) A firm should hire less capital if the MRP of capital is greater than the MFC of capital.
D) A and B are true.
Within which sections of the production function is marginal product increasing. Explicate the link between scarcity, choice and opportunity cost
Explain what happens in these two markets as the number of sellers drops to only one seller. explain how part, illustrates to the first experimental principle
Illustrate the situation: Firm X develops a new product and gets a head start in its production. Other firms try to produce a similar product but discover they have higher average total costs than the existing firm.
Choose on which market structure that these businesses fit - monopolistic competition, perfect competition, and oligopoly also monopoly.
illustrate what do you think will characterize the goods which the EU exports to the United States also the goods which the United States exports to the EU.
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Explain.
A monopolist with a straight-line demand curve finds that it can sell one unit at $7 each or seven units at $1 each. Its marginal cost is constant at $6 per unit.
how long would it take to pay back the investment for the required expansion? b. If sales are expected to increase at a rate of 15% per year, how long will it take to pay back the expansion?
Illustrate by showing the price of a U.S. cell phone in Britain before and after the change in the exchange rate. If you had a business exporting goods to Britain, and U.S. interest rates fell as they have in this example, would you plan to ex..
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
What would be ultimate impact on the equilibrium price also quantity in the market for oak tables if the price of maple tables.
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use
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