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Suppose Frank is a monopolist in the garden gnome market and is producing his profit-maximizing level of output. Suppose further that at this level of production his average total cost is $150, his average variable cost is $130, and the price of one of his gnomes is $160. It can be concluded with certainty that the marginal cost of the last gnome Frank sold was _____, everything else held constant.
1. greater than $160
2. greater than or equal to $160
3. $160
4. less than or equal to $160
5. less than $160
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
A simple model of search. Consider an agent who lives two periods. He is unemployed at the beginning of the first period and has a wage offer of w. If he accepts the wage offer w, he will work forever at that wage. How much would the agent value toda..
Demand curve facing a firm in a perfectly competitive market each firm is so small and re are so many firms that none can affect price.
Provide an example for each about decision-making, interaction and workings of economy. Explain how that influences marginal benefits and marginal costs associated with decision to purchase a house.
1. you are a manager for a regional health system. using an estimate of the price elasticity of demand of -0.25 how
Illustrate what factors seem to be most important in determining development also why
What Should we be Doing with Welfare Policy and Why? You are asked whether current antipoverty policy meets three generally accepted goals of helping, preserving work incentives, and minimizing cost and what changes you would favor and why.
A farmer’s field grows 30 bushels of corn and 10 bushels of beans. The farmer can either consume these crops herself or trade them, with one bushel of beans being traded for one bushel of corn. Graph the farmer’s budget which is the possible combinat..
China is the world's most populous nation with 1.25 billion people. Firms look at that population as a large customer base and are rushing to establish themselves in China. Is this appropriate for all firms? Why or why not?
Explain how you are going to make this decision. If you hire a real estate agent, will the agent be willing to work in your interest of finding the best customer possible? Design two ways in which you can motivate the real estate agent to act in your..
Read the following article: “Porter or Mintzberg: Whose View of Strategy Is the Most Relevant Today?”. What is the difference between deliberate strategies and emergent strategies? How might emergent strategies help with a future strategic planning p..
a) What these numbers mean and how can they assist his business? What he needs to do to "make more profit"?
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