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Problem
1. What is abnormal profit?
2. Where is profit maximized?
3. What profit is made when average cost equals average revenue?
An Internet service provider (ISP) is contemplating an investment of $50,000 in new computer servers and related hardware.
The government wants to decrease the consumption of electricity by 10 percent. The price elasticity of demand for electricity is -0.4.
how do changes in interest rates inflation productivity and income affect exchange rates? is a strong u.s. dollar
Therefore, if a central bank chooses to start paying interest on reserves, but it wants M2 to remain unchanged, what should the bank do to the supply.
Compute the unique Pareto-efficient allocation of the "Robinson Crusoe Economy" and illustrate the producer's and the consumer-worker's problems in one and the same diagram.
Suppose a new drug can cure cancer. It costs a few cents to make the pill, and one pill can stop a malignant growth with zero side effects. The drug goes on sale for a few cents a pill, and although the manufacturer makes millions, the money value..
Discuss one (1) recent price change that you have noticed while visiting your local supermarket. Speculate on whether or not the price change that you identified was a result of a change in either supply or demand. Provide a rationale for your re..
From telephone book listings, the committee chooses 150 businesses at random. Of these, 73 return the questionnaire mailed by the committee. What is the population for this sample survey? What is the sample? What is the rate (percent) of nonrespon..
Suppose your utility over donuts (D) and sodas (S) is given by U(D, S) = D0.5S0.5 + 10. Calculate the marginal rate of substitution (MRS) between donuts and sodas
For the total variable cost (TVC), draw a positive total fixed cost (TFC) and total cost (TC) curves. Then derive the associated marginal cost (MC), average total cost (ATC), average variable (AVC).
What bundle of apples and kumquats should he purchase to maximize his utility?
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a value so high that there is no demand for the good.
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