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If the time-frame at hand is sufficient for all inputs to be variable (adjustable), then the firm is
a. experiencing economies of scale.
b. in the long run.
c. off its expansion path.
d. limited only by the capacity of its fixed capital.
St. Mary's Hospital owns a prime piece of real estate in the center of town. There is a small shopping center on this piece of land. Rents for each store are $4,000 per month. It hires three nurses monthly at $3,000 each. Furnishings are included in ..
What are some of the ways in which Barry Diller’s e-commerce online companies could cooperate to deliver superior value to the customer?
Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..
Assume the market for oil is perfectly competitive, with the following market demand and supply curves: Find the equilibrium price and quantity for this market. Calculate consumer and producer surplus in the competitive equilibrium.
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?
What is contractionary fiscal policy? What is the purpose of contractionary fiscal policy? What are the possible contractionary fiscal policy solutions? What is built-in stabilizer in fiscal policy?
If the Federal Reserve wishes to put upward pressure on market interest rates, what would it be most likely to do? How would it proceed to push the Federal funds rate in an upward direction? How would it lower the funds rate? Describe the trade-offs ..
Illustrate what price should the firm charge to realize the targeted profit. Illustrate what would be its (cost-based) markup ratio.
You have initial wealth of $500 and are offered the following gamble. You flip a coin and if you get heads, you win $1000. If you get tails you lose $500. What is the expected value of the gamble?
Assuming diminishing marginal product of additional workers and diminishing marginal product of additional hours-per-worker, how would a profit-maximizing firm adjust its mix of workers and hours-per-worker in response to [ceteris paribus]: (a) A new..
You are the general manager of the Red Dog mine, which is the sole operator in Alaska selling copper. You have a maximum of S =1,000 tons available to sell this year and next year, and the demand for copper will be constant at p q = ? 1,000 each year..
Using the Internet or a newspaper, locate an article about a controversial environmental issue in your community. Create a critical response from a legal perspective to that issue in the form of a letter on behalf of the community (In other words, pr..
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