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You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year. Several other firms also are interested in hiring this worker.
What is the highest annual salary you should be willing to pay this worker to come to your firm?
What will determine whether or not you actually have to offer this much to the worker to induce him to join your firm?
What is the minimum efficient scale of production? What are economies of scale and diseconomies of scale? What factors cause these economies or diseconomies. Explain the concept of the learning curve and its importance for a firm.
A typical firm in a perfectly competitive market has a cost structure described by the equation: C = 25 − 4QF + Q2F where QF is measured in thousands of units. Using the profit-maximizing condition, P = MC, write an equation for the firm’s supply cur..
You have been asked to evaluate the proposed acquisitions of a new clinical laboratory test system. The system’s price is $50,000, and it will cost another $10,000 for transportation and installation. The system is expected to be sold after three yea..
q. as ceo of firm a you and your management team face the decision of whether to undertake a 200 million rampd effort
Which of the following is not an example of a market failure?
Why does dumping occur in economics and what is a good definition for it?
What are the interest rates this week for the different kinds of loans at your bank, credit union, or savings and loan?
If you were desinging such an amendment, do you think it would be better to require that the actual budget deficit be kept at zero each year, or should the aim be only to keep the structural deficit at zero? Discuss.
Fidelity Magellan is a large cap growth mutual fund and Fidelity Small Cap Stock is a small cap growth mutual fund (Morningstar Funds 500, 2006).
Suppose that a firm’s long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns.
In trying to measure the extent to which labor unions are responsible for increasing wages, economists use sophisticated statistical methods to compare the wages of unionized workers with those of non-unionized workers. Explain why it is not legitima..
What Should we be Doing with Welfare Policy and Why? You are asked whether current antipoverty policy meets three generally accepted goals of helping, preserving work incentives, and minimizing cost and what changes you would favor and why.
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