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Long-Run Industry Supply Why does the long-run industry supply curve for an increasing-cost industry slope upward? What increases costs in an increasing-cost industry?
But the average person with limited information and mixed motivations has a different problem in attempting to answer a survey or express a preference for one project over another. How might these two dimensions of choice complicate the task of co..
Suppose your designing your computer, with the same benefits from additional RAM described in the proceeding problem. How much RAM do you desire if the price of RAM falls to $50? 2,4,5, or 50. Suppose you are designed a new computer and want to mak..
1. in the x11 multiplicative decomposition method yt x c x s x e an ma 3 smoother is applied to the estimated
Suppose that every additional five percentage points in the investment rate (I/GDP) boost economic growth by one percentage point. Assume also that all investment must be financed with consumer saving. The economy is now assumed to be fully employ..
Consider the linear demand function Q = 20 .05P. a. Write the inverse demand function. b. Write the totale revenue function. c. Using calculus, find the level of output, Qrmax.
Consider a simultaneous move quantity-setting game with two firms facing a demand curve p = 100 - q. Both firms have marginal cost of 20. Suppose one firm maximizes profit and the other maximizes revenue, but both take into account the other firm'..
Although perfect competition may not exist, explain why it is relevant to the study of microeconomics.
Suppose households consume 80% of their disposable income. The government is considering three actions to help increase GDP: increasing government spending, cutting taxes, or increasing fixed transfer payments. If the government increases transfer..
Solve Tracy's problem of how often to go to the ATM when nominal interest rate on her bank account is 10%, she spends $30 each day, it cost her $0.50 each time she uses the atm, and she thinks that there is a 15% chance.
An industry consists of two firms, each of which have variable costs of $10 per unit but no fixed costs. The industry demand curve is P = 70 - Q. Solve for the Cournot equilibrium. In doing so, derive the reaction function of each firm (call Q1 an..
The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..
A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $2,000 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192
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