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Bob Edwards owns a pastry shop. Bob hires an economist who assesses the shape of the pastry shop's average total cost (ATC) curve as a function of the number of bagels produced. The results indicate a U-shaped average total cost curve. Bob's economist explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product, which causes it to rise. What would be the second reason? Assume that the marginal cost curve is linear. (Hint: The second reason relates to average fixed cost)
The desire to maximize profits can work against racial and other types of discrimination. To see this, consider two equally productive accountants named Ted and Jared. Ted is black, and Jared is white. Both can complete 10 audits per month.
a) If the monopoly's demand curve intersects the AVC curve at minimum AVC, the firm will shut down.
Which of the following refers to business cycles?
International businesses frequently face sourcing decisions and decisions about whether they should make or buy the component parts that go into their final products. Should the firm vertically integrate into the manufacturing of its own component pa..
Al took a midterm examination in physics and received a score of 65. The mean was 60 and the standard deviation was 20. Bill received a score of 14 in mathemati
You mentioned how the Austro-Hungarian Empire had an agenda. By joining up with Germany did they really think they would achieve their goals?
Suppose the Quick Towing Company purchases a new tow truck. The old truck had a book value of $1,000 and was sold for $1,420. If Quick Towing is in the 34 percent marginal tax bracket, what is the tax liability on the sale of the truck? What is the a..
Why doesn’t the observation that the quantity sold equals the quantity purchased imply that equilibrium has been achieved? What further conditions would have to be met for you to be certain of equilibrium?
How will the dollar devaluation affect businesses and consumers in the twin cities of El Paso, the United States and Juarez, Mexico?
What is the most authoritative source of GDP data? Where can you find it?
Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. America is skilled-labor abundant..
1. What are some of the bond ratings and what do the mean? AAA, etc. 2. What are the types of risk that bonds can have?
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