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Q1. "Total fixed cost or sunk cost is independent of quantity produced."
Assume a small firm has invested $10 million in total fixed cost also another $18 million in total variable cost. As the firm has started marketing its new product at a cost of $25.00 per unit; however, average variable cost of the product is $30.00. Should this firm shut down? Why or why not?
Q2. 1. Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals?
2. Why might failure to specialize Clarify why Neanderthal groups in difference areas did not trade? Remember that comparative advantage is the key basis for trade.
Elucidate each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.
Elucidate why from an economic point of view towing a car illegally parked rather than just ticketing it provides a better incentive.
Consider the first price auction. Write down the payoff matrix also find all Nash equilibrium
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a highter concentration of polluted areas than a command-and-control system.
q1. describe how a developingemerging economy can benefit from trade with a wealthy country even if it has no absolute
Given this structure, why is it that there is little price competition between carriers on the same route Why is there not more price competition If they do not choose to compete on price in most cases, how do they compete with one another What..
How does definition of a market, or for that matter, a business strategy, affect that perception of a monopoly.
What if the pollution invades Baker's home and harms her health
Given the following MV information, what is the optimal allocation of care according to the Paretean criteria, when the marginal cost of care is constant at $100? Person A Person B Quantity of Care Consumed MV Quantity
A firm uses 50,000 workers to produce 200,000 units of output per day. Compute the values for the following four formulas.
A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.
q.mirk labs is a pharmaceutical company that currently enjoys a patent monopoly in europe canada and the united states
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