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A competitive firm's short run total cost function is given by
(a) Calculate the profit maximizing output and the resulting profit when price is $30.
(b) Calculate the profit maximizing output and the resulting profit when price is $80.
The consumption function is C = 0.75Y where the marginal propensity to consume MPC equals .75 (out of an additional $1 in national income 75 cents is consumed). The government increases its purchases by $100 million, and investment and net exports do..
consider a labor market the labor demand curve is flatter than the labor supply curve. In the initial situation, the equilibrium in this market occurs on the "backwards-bending" part of the labor supply curve. Which of the following best discribes th..
Suppose two firms compete by choosing quantities and that neither of them sees the other’s quantity before having to commit to its own production level. Inverse market demand is given by p(Q) = 100 − 2Q, where Q is industry quantity. What are the equ..
A medicine that almost always cures Hepatitis C has been developed. The price of the medication (for enough to result in a cure) is $95,000 (really). Explain how, at this price, the market fails to achieve allocative efficiency. Why is this price cha..
The money multiplier equals 1/R, where R represents the quantity of reserves in the economy. If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply? What does the Fed auction at the Term-Auction ..
Why managers are interested in the concept of price elasticity of demand? Illustrate with examples Why are managers interested in the concept of consumer surplus? Illustrate with examples.
Determine under what conditions, a company should or should not continue to produce the good or service
As I agree with the post below that terrorism is Violence or threat of violence, against non-combatants or civilians usually motivated by political
Consider again the case analyzed in class with two sectors exhibiting constant returns to scale technology (sector A is capital intensive and sector T is labor intensive). Suppose there is a neutral technological change in sector T only (no technolog..
Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
The manager of a corporate division faces the possibility of an audit every yr. She prefers to spend time preparing if she will be audited
What Can The Late George Steinbrenner and the New York Yankees Teach Us About Economies and Diseconomies of Scale? From 1972-1976 the Oakland A's and Cincinnati Reds won all five of baseball's World Series Championships. Despite this amazing success,..
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