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The total profit of a firm is given by
Profit = Total Revenue – Total Cost
Suppose that Total Revenue = 100Q and Total Cost = 30 + 50Q where Q, the quantity sold, is a random variable with expected value 20 and variance 4.
What is the standard deviation of total profit?
If you had a business exporting goods to Britain, and U.S. inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?
Under what circumstances, and why, would the government be opposed to a merger of two firms How does the Justice Department decide which mergers to challenge
What is the quantity of households that would subscribe at a price of $0?
Suppose the government reduces taxes by $20 billion, that there is no crowding out, and that the marginal propensity to consume is 3/4. a) What is the initial effect of the tax reduction on aggregate demand
In any city at any time, some of the stock of usable office space is vacant. This vacant office space is unemployed capital. How would you explain this phenomenon Is it a social problem
Discuss why the number of children that a family has may differ in an Industrial Society and a Third World Agrarian Society.
The nation of Ectenia has 20 competitive apple orchards, which sell apples at the world price of $2. The following equations describe the production function and the marginal product of labor in each orchard:
Amazon's "autobot" recommended a book to an economist titled Quality maintenance: Zero Defects through Equipment Management. The book's description is "Achieve zero-defect product quality by eliminating the root causes of your equipment defects
To take advantage of high prices for snow shovels during a very snowy winter, Alexander Shovels, Inc., decides to increase output and the success of Red Bull leads more firms to begin producing energy drinks.
What happens to the indifference curves when a household's income is reduced and how does a budget constraint explain consumer choices when used in conjunction with indifference curves?
Fairfield began a living wage that paid all landscapers in the city a wage above the current market wage. Vacaville, a neighboring city, did not begin a living wage. Below are employment date for the year before and the year after the living wage ..
What are the pros and cons of conducting an experimental versus an observational study? What are examples of these studies? Can both types of studies be used for all projects?
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