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When a small firm expands the scale of its operation, why does it usually first experience increasing returns to scale? When the same firm grows to be extremely large, why might a further expansion of the scale of operation generate decreasing returns to scale?
The St. Thomas Winery plans to open a new production facility in the Napa Valley of California. Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year
Use your direct demand function to construct an equation and column for TR. What is the total-revenue maximizing price and quantity, and how much revenue is earned there? Compare that to the TR when P = $83 and P = $70.
is where one player maximizes his payoff and the other doesn't.
She wants to mazimize the number of cusotmers served, given a fixed payroll. The following table shows how the toatl number of cusotmer served varies with the number of employees:Number of Employees High School Diploma(served) Bachelor's Degree(ser..
In the state of California, rice growers burn their field stubble to sanitize their fields. The field burning causes serious air pollution. The alternative sanitizing method costs $150 per acre.
Susan is considering buying a 2011 Smart ForTwo costing $21,635 and finds that the retaining values of the vehicle over next five years are as follows: Percent of the total value retained after 36 months: 28% Percent of the total value retained aft..
The inverse market demand in a homogeneous product cournot duopoly is P=280-2Q=280-2(q1+q2) and costs are C1(q1) = 20q1 and C2(q2) = 30q2. a. How much output will each firm produce in equilibrium b. What are the equilibrium market shares for these t..
A firm is a perfectly competitive industry with atotal revenue of Php 2 million a year when producing 200,000 unitsof output per year; a) Find the firm's average revenue (AR); b) Find the firm's marginal revenue (MR);
What are the implications of these measures for government economic policies?
Candidate A is running for president of the student government at a large university. The proportion of voters who favor the candidate is 0.8. A simple random sample of 100 voters is taken. a. What are the expected value, standard deviation, and sh..
A needy family of a mother and three children currently receives cash benefits that average $12 per day. The mother of this family is allowed to earn an average of $4 per day before her benefits begin to decline.
For each event, you must specify how it effects either demand, quantity demanded, supply, or quantity demanded. It is also important to demonstrate how the change will affect the market demand or supply curve.
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