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In the short run, the average total cost curve slopes upward because of:
diseconomies of scale.
increasing returns.
diminishing returns.
economies of scale
Do you think in legal matters and health matters and so forth people should be economically valued differently? or should there be one standard amount each person is worth/
A monopolist with a straight-line demand curve finds that it can sell one unit at $7 each or seven units at $1 each. Its marginal cost is constant at $6 per unit.
How can makers of flat-panel TVs earn economic profits during the first few months after the introduction of new models? What economic forces result in the dissipation of economic profits earned by manufacturers of flat-panel TVs?
Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.
Unusually good weather which improves crop production also a major oil discovery are examples of unexpected supply shocks in the economy
An economic system, in which economic decisions are controlled by the internal interaction of supply and demand, is known as a Illustrate what.
Suppose the city of Davis imposes a luxury tax on latte producers of $1 per latte. Assume the latte market is perfectly competitive. Suppose also demand for lattes (per hour) is given by Q = 20 - 2P, and supply is given by P=2, where P is in $. What ..
The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time and reach this steady state.
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies? At what production level are scale economies exhausted?
What is the difference between the Federal Reserve’s “discount rate” and the “federal funds” rate? Why is the discount rate in the US not as important in financial markets as the federal funds rate?
Entry of firms in a monopolistically competitive industry is characterized by two "external" effects. What are these effects and how do they affect a monopolistically competitive firm. How are consumers and incumbent firms influenced by these externa..
Explain what determines the level of income, employment, output and prices in our economy. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and s..
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