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A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q+2Q^2.
a. How much output should the firm produce in the short run?
b. What price should the firm charge in the short run?c. What are the firm's short-run profits?
d. What adjustments should be anticipated in the long run?
In a closed economy the following holds: Household consumption C is given by the consumption function: C = 100 + 0.75Yd Planned investments are I = 250 (independent of Y ). Household disposable income: Yd = Y - T, where Y is production. Taxes depend ..
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1995 200 2000 302 1996 215 2001 320 1997 237 2002 345 1998 260 2003 360 1999 278 2004 382 Calculate a trend line, and forecast sales foe 2005. How confident are you of this forecast
Suppose a firm's short-run total product schedule is given in the table below. It sells its output in a competitive market for $1.50 per unit. Labor Total Product Marginal Product Marginal Revenue Product 0 0 1 8 2 18 3 29 4 39 5 47 6 52 7 53 8 53
Going back to the demand curve in part (a), suppose the current market price for an orange is $5, what happens to the demand curve for oranges if the price goes to $7 per orange That is, does the demand curve shift or is there a movement along the..
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