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Short Answer & Essay Questions
You must complete two Short answer questions and one Essay question All answers must be in the form of a paragraph (minimum of 5 sentences per paragraph). Please select from below:
Short Answer
1. Think about a firm and its investments. What is considered to be the normal rate of return? What type of specific cost would this be to a firm?
2. Think about how demand and supply may change over time given certain events. What is the relationship between average total cost and marginal costs?
3. What are two reasons for a firm to operate at a loss? Please provide an example.
Essay
1. Describe the Behavior of the Profit-Maximizing Firm. How does the firm account for costs? Define and explain the two types of costs associated with production? How do decisions change from the short-run to the long-run?
2. Describe how economies and diseconomies of scale affect firms. How do barriers to entry lead to economies of scale? What are the three types of returns to scale and how do they impact the way the firm produces? What are the competitors that face the various returns to scale?
Explain how the following statements relate to the AD-AS model? The FEd expected a weaker dollar to help increase exports. The above actions by the Fed may cause inflation to rise to levels that most would consider unacceptable.
A monopoly firm faces a demand curve given by the following equation: P = $500 ? 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost.
1. whatnbsp was the neolithic revolution?nbsp explain carefully what basic changes caused this revolution and what
assume the marginal product of labor is mpl 20 and the marginal product of capital is mpk 50. in addition the price
If the marginal cost ofplantingand harvesting an acre is $7000 per acre for each of the five acres, how many acres should the farmer plant and harvest?
Dividend yield is the annual dividend paid by a company expressed as a percentage of the price of the stock (Dividend/Stock Price X 100). Construct a frequency distribution and percent frequency distribution.
Identify the tax choice that had the most progressive effect on your overall outcome. Why did it have such a progressive effect? Identify the tax choice that had the most regressive effect on your overall outcome. Why did it have such a regressive ..
Determine the firms marginal revenue function, its profit-maximizing quantity, its profit-maximizing price, and its profit.
Suppose country A is large enough to affect the world price of motorbike and therefore it faces an upward-sloping supply curve from the rest of world (ROW). The supply curve of the ROW is shown as follows:
Firms in a competitive market are unable to dictate the price for which they sell an item for and over a long period of time will be unable to make an economic profit.
What happens to gdp if interest rates go up? Please describe in terms of supply and demand as well
Show computation and graph
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