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Suppose that in the short run capital is fixed and labor is variable. What happens to the firm’s average cost, average variable cost, and marginal cost when the following changes occur?
The government institutes a mandate for a new yearly business license
The government imposes a per unit tax on each unit produced and sold.
Demand for your good declines
International businesses frequently face sourcing decisions and decisions about whether they should make or buy the component parts that go into their final products. Should the firm vertically integrate into the manufacturing of its own component pa..
An increase in the supply of a product can be shown graphically as a rightward shift of the supply curve. The graph will clearly show that we would expect the equilibrium price to fall and the equilibrium quantity to increase. Use a general solution ..
If JMJ Industries realizes a profit of $4 per unit sold, what is the fixed cost portion of their production costs? Their variable costs are $1.50 per unit, and they sell 1,000 units per year at a price of $6 per unit.
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Why might firms in perfect competition choose to be open on Monday, typically the slowest day of t..
q1. pick a society and time in history you would consider that the vast majority were doing very well economically.
Illustrate what happens to total income from shoe sales (Estimate P x Q before and after cost change). Repeat exercise for initial costs being decreased to $40 and $20, respectively.
Is it possible for a country to have a current account deficit at the same time it has a surplus in its balance of payments? Explain your answer, using hypothetical figures for the current and no reserve financial accounts. Be sure to discuss the pos..
What is grouping ambiguity? If a claim is made by a disinterested party, we know that. What is the meaning of the rhetorical device called a stereotype?
What do you think it resulted in less standing in line by pregnant women. Do you suppose and women became pregnant in prder to cut into the long lines.
Discribe the difference in economic profit between a competitive firm and a monopolist in both athe short and long run. Which should take longer to reach the long-run equilibrium?
It is July 30, 2015. The cheapest-to-deliver bond in a September 2015 Treasury bond futures contract is a 13% coupon bond, and delivery is expected to be made on September 30, 2015. Coupon payments on the bond are made on February 4 and August 4 each..
What number of workers appears to minimize the marginal cost of pizza production assuming that each pizza worker is paid $500 per week?
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