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A firm with a kinked demand curve experiences an increase fixed costs. Explain how the firm's price, output and profit change.
Due to an increase in her rent, Isa needs to cut back her spending on other items. Which of the following types of goods will Isa consume less of? A. substitutes B. normal goods C. infe
four companies produce virtually all breakfast cereal. how might this concentation of market power affect market outcomes? what should the government do, if anything?
As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles? A. Compliance with the law in every situation B. Doing good to those
A firm's marginal cost of production is constant at $5 per unit, and its fixed costs are $20. Draw its total, average variable and average costs. Marginal Cost (MC): $5 per unit Fixed Cost (
Advertising can inform buyers, but sellers must incur costs to advertise. If so, advertising can result in higher prices to consumers. Does this mean advertising is economically inefficient?
Find the uniform price if there is two customers: Type A who will only pay 10.00 dollars for a single unit of the good, and Type B who will only pay 8.00 dollars for a single unit of goods. There is 1
Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range. The price on the demand curve is the producer's average revenue.
Could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit and fixed costs are $20.00
You bought the bond for $1,040, after 6 months you received a coupon of $35 and after another 6 months you received another $35 coupon and you sold the bond for $1,070. What would be your total doll
Why does a government place price ceilings, such as rent control, on some "essential" goods? C. am I right? A. to prevent the development of a black marketB. toencourage an increase in suppl
Engineers for the Off Road Skateboard Company have determined that a 10% increase in all inputs will cause output to increase by 5%. Assuming that input prices remain constant, you correctly deduce th
Some of the fields have large enough quantities of both oil and natural gas that coordination must achieved for the production of both rather than oil alone. Will fields with both oil and gas have gr
The central bank is rensponsible for the management of monetary policy. What is the major tool of monetary policy, and how would it operate in the context of a tight money policy?
Why is a high level of subsistence agriculture a characteristic of less developed countries? A. It shows that the country uses less energy. B. It means that more people are unemployed or und
The formula given was: (real rate of interest) = (nominal rate of interest) - (expected rate of inflation) A chartered bank offers a one-year loan at "3 points above prime." Prime is 4 per cent.&
Consider an infinitely repeated Cournot duopoly with discount factor delta <1, unit costs of c>0, and inverse demand functions p(Q)=a-bQ, with a>c and b>0. Find the condition on the
Explain how a firm's production function is related to its marginal product of labor? How a firm's marginal product of labor is related to the value of its marginal product? How a firm's value of ma
If all the assumption of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions w
At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firm’s plant in Miami. The Miami plant currently loses $60,000 monthly. The president o
In the following examples, state how you would use the principle of marginal analysis to make a decision. a. Deciding how many days to wait before doing your laundry b. deciding how much lib
What is usually the relationship between a bond’s rating and the interest rate a company pays to buyers? A. The rating is the same as the rate. B. The higher the rating, the low
Why is representative money more useful than commodity money? A. Representative money has value because the government says it does. B. Representative money exists in unlimited supply,
Which is a real life example of a market that is close to perfect competition a.a computer monopoly b.an oil and gas cartel c.farmers market d.public school system.
Imagine that you manage a company that has invested $5 million in developing a new product, but has not completed development. At the last meeting, your salespeople report that the arrival of new comp