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Q1. Assume that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?
Q2. Assume that the firm's production function is given by Q = 10KL1/3. The firm's capital is fixed at K. What amount of labor will the firm hire to explain its short-run cost-minimization problem?
Q3. Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output?
Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.
Do current politicians use to manage and influence to get reelected. Is this a "valid" use of political power.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
Assume there are no other countries willing to trade goods, so when there is no trade between these two countries, each country consumes the amount of wheat and clothing it produces.
Provide examples of two industries with different time frames for the short run. Clarify why this is the case.
After allowing for sleep and personal care, she has 70 free hours each week and must split these hours between work to earn money.
Small minimum efficient scale in assembly operations indicate high or low entry threat in the PC business
Do you think it is a good idea for the Russian government to take the measure of encouraging foreign carmakers to build factories in Russia.
Provider A charges $120 per month for the service regardless of the number of phone calls made.
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