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1. Provide some examples of unavoidable fixed costs. How are these related to sunk costs? Describe why a firm should not consider sunk costs when making decisions.
2. Describe the relationship between fixed, variable, and total costs.
3. Why is a fixed cost curve horizontal? Why does a variable cost curve have a positive slope?
Suppose that the federal government's annual budget deficit is $250 billion and that the Fed's holdings of government securities increase by $10 billion over the year. How much of the deficit was monetized
Two investments have the following expected returns(net present values) and standard deviation of return. Product A Expected return$50,000 Standard deviation $40,000 Product B Expected return $250,000 Standard deviation $125,00.
Using supply-and-demand models, illustrate how the law and then its elimination affected the rental housing market. Discuss the effects on the equilibrium rental price and the quantity of housing rented.
After being the monopolist for awhile, there's a new firm entering the market. Both firms will be choosing output simultaneously (new firm has the same cost function) How many machines would you recommend firm A to produce
Could these have been avoided?
Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk rose 80 silk leaves, what is the opportunity cost of producing additional 10 silk roses
A city engineer knows that she will need $125 million in 4 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 5 million vehicles per year. How much per vehicle should the toll be to cover the cost
If the long-run production function is q = O.4KL^0.5, what is the firm's short-run production function if K = 5 units What is the firm's output when L = 16 workers What is the firm's marginal product of labor and average product of labo
George and KC have been working jobs that pay $20,000 and $30,000/year, respectively. They are trying to decide whether to quit their jobs and jointly open up a taco stand on the beach, which they estimate can earn $60,000/ year. How will the taco..
The market demand curve for oil drilling services is D(P) = 400 - 5P, where D(P) is monthly demand at price P. Find the market supply curve in this market, and determine the short-run equilibrium price.
The U.S. dollar price of a Swedish krona changes from $.1572 to $.1730.
If Hawaii Cable is unregulated and it gives householders a 50 percent discount for second and third connections, describe how its economic profit, consumer surplus, and deadweight loss would change.
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