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Each firm in the perfectly competitive widget industry produces with the levels of marginal cost (MC) and total variable cost (TVC) at various levels of output Q shown in the following table. Each firm has a total fixed cost of 64 and a sunk fixed cost of 48.
a) Draw a clearly labeled graph of the short-run supply schedule for this firm. Be sure to indicate the shutdown price for each firm and to explain your reasoning for the shape of the supply curve.
b) What is each firm's producer surplus when the market price is 16?
c) What is the breakeven price for each firm?
an expenditure of $20000 is made to modifya material handling system.this modification will result 1st year saving of $2000,2nd year saving $4000 and a saving of $5000 per year thereafter.
In every scientific poll on inventions, the printing press has consistently been voted the most significant invention of the past 2000 years. What cultural and social changes were brought about by the printing press
Assume that 10 percent of capital depreciates each year. What gross saving rate is necessary to make the given capital-labor ratio the steady-state capital-labor ratio (Hint: In a steady state with no population growth or technological change.
Your money is tied up and you need to borrow $ 10,000. The following two alternatives are being offered by the lender: ( 1) pay $ 3,288.91 at the end of each year for 5 years, starting at the end of the first year
What is your view on this?
The tangency condition implies the Euler equation MU(Ct) = (1+r1 ) MU (Ct+1). Now assume the marginal utility functions are MU (Ct) =βtct-1/α (1) where α is the intertemporal elasticity of substitution(IES) (a) Derive the specific Euler equat..
Do these assumptions, in your opinion, bring the model closer to or further from the world as you know it?
in a country output is produced with labor and physical capital. the production function in per-worker terms is yk12.
coordinate axes on a piece of graph paper. Label horizontal axixs from 0-50 units and vertical axis from $0- $20 per unit. Draw a demand curve that intersects the vertical axis at $10 and the horizontal axis at 40 units.
Five years ago, a company invested in equipment having a 10-year technological life and before-tax cash flows (gross income less expenses) given below. Sales were not as good as projected, and the company is considering terminating the project.
Prepare the general journal entry to record the cash payment for the purchase assuming the discount was forfeited and the net method of recording purchase discounts is used.
Last year's crop was 100 million bushels, and the price was $5 per bushel. This year's weather was favorable throughout the country, and this year's crop will be 110 million bushels, or 10 percent larger than last year's. The price elasticity of d..
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