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Bob Edwards owns a pastry shop. Bob hires an economist who assesses the shape of the pastry shop's average total cost (ATC) curve as a function of the number of bagels produced. The results indicate a U-shaped average total cost curve. Bob's economist explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product, which causes it to rise. What would be the second reason? Assume that the marginal cost curve is linear. (Hint: The second reason relates to average fixed cost)
If there were a decrease in the market demand for a product with no change in market supply, the equilibrium price would:
Calculate the effective annual rate, or EAR (annual percentage yield).
A.) Find the standardized test statistic z, and its corresponding area. z=_____(round to two decimal points)
When abdominoplasty costs were $6,000, Dr. Hurwitz treated 300 patients. When they dropped the price to $5,000, customers increased to 400. What is the elasticity of demand for abdominoplasty using arc elasticity or the midpoints formula (rounded-off..
How do developing and industrial countries differ in their use of technological change, labor, capital, and natural resources to produce economic growth? Why do these differences exist?
State the effect of the error on the December 31, 2010, balance sheet of Boss Motorcycle Shop. State the effect of the error on the income statement of Boss Motorcycle Shop for the year ended December 31, 2010.
We are tasked with trying to find the probability of the second aircraft finding the submarine during the gap or lapse of time between aircraft 1 leaving
A 30-year mortgage for $95,000 is issued at a 9% nominal interest rate. What is the monthly payment? How long does it take to pay off the mortgage, if $1,000 per month is paid? How long does it take to pay off the mortgage, if double payments are mad..
What rate of return, in terms of nominal annual rate, will you realize on this deal? (Compute to nearest 0.01%.)
A man is planning to retire in 20 years. He can deposit money for his retirement at 12% interest rate compounded monthly. It is estimated that the future general inflation (f) rate will be 4% compounded annually. Assume that his first withdrawal occu..
If the interest rate is 9% per year, how long will it take to recover the initial investment?
Ranking everyone by the amount spent on medical care, 30 percent of the total (all expenditures for all people) is accounted for by the top 1 percent of patients. Take the overall average per capita personal health expenditure and determine how much ..
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