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1. If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what does it pay a perfectly competitive firm to do if?
a. The market price is $51
b. The price is $36
c. The price is $12?
The possible merger currently faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.
Making dresses is a labor intensive process. Indeed, production function of a dressmaking company is well described through the equation Q=L-L^2/800,
In a market study for Zellers, a researcher found that 70% of customers are repeat customers. If 12 customers are selected at random, find the probability of getting.
Predict what would have occurred had the monopoly succeeded.
According to the profit-maximization goal, the firm should attempt to maximize short-run profitssince there is too much uncertainty associated with long-run profits.
What does it mean to specialize according to one's comparative advantage and trade internationally and Provide an example of a business efficiently using this economic principle.
There are several important disclosure items to consider when auditing the purchasing process. Discuss what they are and why they are important.
Calculate the arc elasticity of demand. Is the demand elastic or inelastic over this region? What happened to total revenue?
Say there is a natural disaster which wipes out all of tomato plantation of one country. so there is a drastic increase in the price say from $6 to $15 a kilo
Now assume that the discount rate changes across periods. In specific, the discount rate for period 1 (discounting from period 1 to period 0) is r1 = 10%, the discount rate for period 2 (discounting from period 2 to period 1) is r2 = 8% and the disco..
Managerial economics bridges the gap between economic theory and practice
Calculate the slope and the intercept of the supply curve before the storm. Draw both supply curves on a new graph with P on the y-axis and Q on the x- axis. Add the demand curve (calculated in part a) to the graph.
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