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A firm’s short run total cost STC=4+q+q^2. It is a price taker.
a. What is its short run average cost function SAC? Marginal cost function SMC? Draw them in one graph.
b. How many should it produce if P=6? What is the profit?
c. How many should it produce if P=5? What is the profit?
d. How many should it produce if P=3? What is the profit?
e. What is its short run total variable cost function SVC? Short run average variable cost function AVC? Could you conclude that average variable cost is always less than marginal cost? What is the minimum price that the firm is short run profitable (find the answer from part b-d)? Does the firm has any shutdown price if P>1?
The given utility function is U= 100 Qt 0.5 Qc 0.5, the individual’s dual problem is to minimize E=Pt Qt +Pc Qc (show all the works and steps) What is the compensated demand function for Qt? What is income elasticity for good Qt? What is own price e..
Suppose that omar's marginal utility for cups of coffee is constant at 1.5 utils per cup no matter how many he drinks. On the otherhand, his marginal utility per doughnut is 10 for the first doughnut he eats, 8 for the third he eats, and so on. In ad..
PL is the price of unskilled labor in dollars (the wage rate = $6), PC is the price of capital as a percentage, I is family ncome also PS is the price of California oranges.
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
How would this change the consumer and producer surplus? Suppose a price floor of $16 was imposed. How would this change the consumer and producer surplus?
Based on the discussion in this chapter, update the controversy over the value of the Chinese yuan in foreign currency markets. Is China still using central bank foreign exchange policy to maintain the value of the yuan? What is the current policy of..
Some employers no longer consider a prospective employee's grade point average as a useful signal. Why might this be the case? because it is not fair to the students who put in a lot of effort and still get bad grades
You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. Explain how will impact BlackSpot bottom line.
Discuss why a corporation would want to enter a country with a high political risk and benefits that would need to be present to outweigh risk. Provide specific examples to support your response.
Hyundai Case Study - Common case focuses on the operations of Hyundai, the Korean automobile manufacturer, in China.
What is the economic profit/loss associated with this order if you proceed? Should you proceed or back out of this transaction?
Explain how do you think which these individuals would rank the utility of these similar expenses for themselves.
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