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The CEO of major automaker overheard one of division managers makes the following statement regarding the firm's production plans: "In order to maximize profits it is essential that we operate at the minimum point of our average total cost curve". If you were the CEO of the automaker, would you praise or chastise the manager? Explain
Suppose which the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their monopoly of gambling.
What is the present value of innovation to the innovating firm? In a patent race, what might each firm be willing to spend on research and development?
explain how and why a monopolist would try to price-discriminate: Providing air travel for business people and tourists; A fast-food restaurant that serves business people and retired people
Discuss the power of compound interest and why compounding makes it important for people to save and invest for retirement early in their working life rather than waiting until they are close to retirement.
You decide to open a retirement account at your local bank that pays 7%/year/month (7% per year compounded monthly). For the next 20 years, you will deposit $500 per month into the account, with all deposits and withdrawals occurring at month’s end.
If operating capital is running $60,000,000 and employment is running 4,000 employees in the company, what is the value of the marginal rate of technical substitution between operating capital and labor in the Biddle Company?
How does imposing rent controls affect the number of housing units available to low-income families? Illustrate your response using graphs.
As we observed in this chapter, central banks, rather than purposefully setting the level of the money supply, usually set a target level for a short-term interest rate by standing ready to lend or borrow whatever money people wish to hold at that in..
use the information on newell rubbermaid shown here to answer the questions below. show work.current stock price
Explain how much extra surplus does the producer capture when it engages in first-degree price discrimination instead of charging a single price.
If the slope of the yield curve increases (steepens) after a decrease in the federal funds rate:
Elucidate how does the real wage rate at point c compare with the real salary rate at point a. How do nominal wage rates compare at those two points.
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