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1. Why would a firm that incurs losses choose to produce rather than shut down?
2. In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true?
3. Because industry X is characterized by perfect competition, every firm is earning zero economic profit. If the product price falls, no firm can survive. Do you agree or disagree.
Consider a three-year car loan. The price of the car is $10,000. The interest rate is 5% for the first year but is 10% for the remaining years. What should be the (fixed) annual payment?
What will be the rate of return earned by most firms in the industry in long-run equillibrium - If firms can copy each other's technology, what will be the rate of return eventually by all firms?
a grocery store needs to sell 3000 cartons of 2l 2 milk per month. the sales is relativiely constant throughout the
How is the U.S. economy different from a command economy? Can the U.S. economy be called a true free market economy? Provide examples and justify your conclusions.
Examine the steps of agenda setting, policy formulation, and policy implementation for a public policy on energy and evaluate factors that may influence agenda setting, policy formulation, and policy implementation energy policy.
Price Elasticity of Demand facing you in your scenario, including actual calculation of it using the midpoint formula. If you can't find data, then determine the Price Elasticity from the Characteristics and make up numbers to use.
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
evaluate the impact of public policy on economic growth from an ethical and global position. Be sure to be specific as to which ethical posture you are taking.
Some observers argue that the mandate of the Federal Reserve Bank should be changed to prioritize the control of inflation over other goals.
Presume the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Describe.
Suppose the full-employment level of real GDP is increasing at a rate of 3% per period and the money supply is growing at a 4% rate. What will happen.
A random sample of 100 credit sales in a department store showed an average sale of $120.00.From past data, it is known that the standard deviation of the population is $40.00. Determine the standard error of the mean.
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