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Suppose that price of capital is $1 and price of labor is $2 and total outlay is $16. Write the equation for the iso-cost line and plot it on the same graph with the iso-quants.
Identify which of the following statements is always true for a natural monopoly as the number of units produced (output) increases.
Calculate the new cost earned by sellers, the cost paid by clients, as well as the equilibrium quantity sold in the market.
Three men claim to be the fastest gun in the West. To see who is right, they agree to meet at a desolate location in a desert. On a circular, cobblestoned area that is roughly 50 yards in diameter, each stands at the perimeter such that each man is e..
Vending machines are a popular form of non-store retailing. Why? What types of products have been successfully introduced in such machines in the past ten years or so? And why? Which ones have failed and why?
A trucking company computes depreciation on its vehicles by a mileage basis. Suppose a delivery truck has a cost of $20,000, a salvage value of $2,000, and an estimated useful life of 200,000 miles. Determine the depreciation rate per mile.
When a tax is levied on a good or service, the following will happen:
Lisa is a self-employed physical therapist who works from a rented space. Lisa charges $250 for a therapy session. She incurred the following costs last month: space and equipment rental, $1400; wages, $3500; materials, $1800. If Lisa’s profit last m..
A drought in Nova Scotia reduces the apple harvest, what happens to consumer surplus in the market for apples? What happens to consumer surplus in the market for apple juice? illustrate your answers with diagrams.
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one-shot to reach an agreement.
If the economy is experiencing a large recessionary gap, what dicretionary policy might the government use to get the economy out of the output gap?
If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows to equal the cash flow at Time 0.
Assume an economy with a coal producer, a steel producer, and some consumers (there is no government). In a given year, the coal producer produces 20 million tons of coal and sells it for 5$ per ton. The coal producer pays $50 million in wages to con..
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