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About the topic of national debt, it just likes we lent money from our offspring. Most of us think the debt is bad. However, someone has different ideas. If you can lend some money from your children, you will be better off and your children will be worse off after that. But, if your children can also do the same thing to your grand children, they will be no longer worse off but your grand children will be worse off. Suppose human beings can exist forever and every generation could borrow money from their next generation. The first generation has more money and no one loss anything. Is that great? Who say there is no free lunch in the real world? What do you think about this idea?
Public utilities such as electricity are referred to as natural monopolies and are often subject to regulation by a state authority
Choose a United States multinational company. In terms of currency denomination, discuss how the company values its revenues and costs.
You manage the plant the mass produces engines by teams of workers using assembly machines. The technology is summarized by production: Find out the short run production function? Find out the total cost function for your plant to produce q engines ..
Now assume that there're five firms in the industry, and that they collude to set the price. What price will they set? What will be the output of each firm? What will be the profit of each firm?
Suppose that raw materials (input R) are fixed at 10 units. Determine the number of units of input L that maximizes the total product function.
What happens to the student's budget line? Illustrate the change with new books on the vertical axis. Is the student worse off or better off after the price change. Explain.
Assume each worker is paid $10 per hour and works a 40-hours week. How many workers should the firm hire if the price of the output is $ 10? Suppose the price of the output falls to $7.50.What do you think would be the short-run impact on the firm..
Say half of the cost of producing wheat is rental cost of land (a fixed cost) and half is cost of labor and machines (a variable cost). If the average total cost of producing wheat is $8 and price of wheat is $6, what would advise the farmer to do..
We make choices as consumers every day. Opportunity cost is defined as a person's "next best alternative" or "the cost of what you give up when you make a choice."
At what output is AVC at minimum? If the market price of firm's output is $7 per unit, should the firm produce or shut down?
Firms like Papa John's, Domino's, and Pizza Hut sell pizza and other products which are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of such firms products permits them to charge prices a..
Assume a company has the following demand equation, Q = 1,000 - 3,000P + 10A, where Q = quantity demanded, P = product value, and A = advertising expenditures
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