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A competitive firm is facing the market price of $120 and has a short-run total cost function ofTC = 2Q2 + 200. The corresponding MC = 4Q.
(a) Sketch the demand curve, MR curves well as the MC curve as per information above.
(b) What volume of output should the firm produce?
GeeM has a sporty wheel package and a luxury interior package that is considering offering to its auto boyers. GeeM has estimated that there are three consumer types (A, B, and C - all of equal magnitude - for simplicity, consider it one of each ..
Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve Explain why the shift may be higher or lower than the ..
You open a savings account to save for a new house. Everymonth you put $100 into a savings account which pays 5% interest compounded monthly.
Develop an Excel spreadsheet that Souter can use to evaluate the economics of the two-part fee structure
A distillation column is purchased for $300,000. The firm finance 40% of the investment with its own resources, and the rest with a loan to be repaid in 10 equal semiannual payments at an interest rate of 6% compounded semiannual. (Hint recall tha..
An oligopoly firm faces a kinked demand curve with segments given by:P=100-Q and P=120-2Q, where P is the price and Q is the quantity demanded. The firm has a constant marginal cost, MC of $45. A. Determine the firm's profix maximizing level of ou..
You have just applied for a credit card with the following term and condition: You are to pay 13.9% APR, compounded monthly.If your current balance is $3000 and you skip payments for 2 months, what would be the total balance in your credit card stat..
A city government is considering two types of town dump sanitary systems, as shown below. Select the better system based on BC analysis at 8% social discount rate (same as MARR). Design A Design B Initial investment $400,000 $300,000
a.) Determine the profit maximizing level of output. b.) Compute the profit maximizing price. c.) Calculate the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
What distinguishes the golden rule rate of capital accumulation from other steady-state rates of capital accumulation Is the rate at which capital is being accumulated in this economy consistent with the golden rule
Suppose unemployment is kept at this higher level. What happens to inflation in year 3? In year 4? How many years does it take to get inflation down to zero? Make a table like the one in the previous problem to show your results.
consider an economy that produces only two goods fresh apricots and dried apricots. in this economy the technology of
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