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Question: In economics, the assumption of maximization of profit explains behavior of firm. Profit is defined as total revenue minus total cost and profit is maximized at the level of production where total revenue exceeds total cost by the largest margin. At what level of production would firm profit be maximized? Would profit be maximized by producing the optimal output or the maximum output?
why would a country eliminate trade restrictions and encourage free trade? using the european union as an example
If the past three months of pcip are zero and pcsp-1 =0, what is the predicted growth in industrial production for this month? Is it statistically different from zero?
Economics 706 - Problem Set 2. Use matching to construct an estimate of the treatment on the treated. First you must choose some rule to decide what to do if there is more than one available match. Explain what that is as part of your answer
Discuss the effects on a country's current-account balance from the following changes in tax rates. a. A permanent increase in the tax rate on labor income and b. A temporary increase in the tax rate on asset income
If a firm in a perfectly competitive market experiences a technological breakthrough, A. other firms would find out about it eventually B. other firms would find out about it immediately C. other firms would not find out about it D. s..
Consider the fictious good Derp. The demand for Derp is Q = 1200-2p. Suppose the supply is given by Q+ -600 +2P. Enter numbers only. If decimal, include decimal and round to nearest tenth. What is the equilibrium price of Derp?
As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of so..
Assume that steel is used as an input in the production of cars. Using that information, calculate the GDP for the year 2016. Explain your answer in words.
Describe how the ice cream industry fits the oligopoly model and, how does the government influences oligopolistic behavior and do oligopolists always compete on the basis of price?
defendo has decided to introduce a revolutionary video game and as the first firm in the market it will have a monopoly
What do financial intermediaries do and how do they promote efficiency? Discuss.
1) When was Social Security started? 2) When was Medicare started? 3) What is the current Social Security tax rate?
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