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Q1. Suppose a competitive firm that is profit maximizing pays a wage of $750 per week and the price of its output is $15. Based on this information, you may surmise the firm's marginal product.
Q2. Suppose a small firm has invested $10 million in total fixed cost and another $18 million in total variable cost.
The firm has started marketing its new product at a price of $25.00 per unit; however, the average variable cost of the product is $30.00. Should this firm shut down? Why or why not?
A local community voting to raise property taxes to increase school expenditures
The trade or business of manufacturing dolls and accessories
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Distinguish between the resources market and the product market in the circular flow model.
The municipal swimming pool charges lower entrance fees to local residents than to non-residents. Conclude that non-residents must have for swimming at the pool than residents.
Calculate gross national product and net national product
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
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