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Draw the isocost line for a total cost per day of $2,000. Label the axes. Demonstrate your answer to part (b) using isocost lines and isoquant curves.
Then, try to determine how financial markets contribute to productive and allocative efficiency in the U.S. economy.
How does the arrival of new information affect the price of those futures contracts? Try to model the situation, using demand and supply curves.
Show on your graph and analyze the long-run adjustment to income change. Be sure to discuss any changes in output levels, prices, profits and number of firms.
Assuming that this is a constant-cost industry, describe the process by which the industry returns to long-run equilibrium following a change in market demand.
Find a commodity that you believe trades in a perfectly competitive market. Describe why you believe this is so.
Draw typical marginal, average and average cost curves that would illustrate firm's situation. Identify quantity the firm would choose to produce at this price.
Draw a marginal revenue curve for a price at which firm would suffer such severe losses that it would choose to shut down in the short run given marginal cost.
Explain how it may be profitable for South Korean manufacturers to sell new autos at a lower price in the United States than in South Korea.
(Conditions for Price Discrimination) What four conditions must be met for a monopolist to price discriminate successfully?
Can U.S. Postal Service be considered a monopoly in first-class mail? What has happened to the price elasticity of demand for first-class mail in recent years?
Analyze Why is society worse off under monopoly than under perfect competition, even if both market structures face same constant long-run average cost curve?
Why would a monopoly firm never knowingly produce on the inelastic portion of its demand curve?
Explain why the marginal revenue curve for a monopolist lies below its demand curve, rather than coinciding with the demand curve, as is the case for perfectly.
(Revenue for the Monopolist) Why is it impossible for a profit-maximizing monopolist to choose any price and any quantity it wishes?
Analyze what are benefits of the staggered movie times allowed by multiple screens? What is the benefit to a multiscreen theater of locating at a shopping mall?
What types of changes could shift the long-run average cost curve? How would these changes also affect the short-run average total cost curve?
Why do the average total cost and average variable cost curves get closer to one another as output increases?
(Marginal Cost) Explain why the marginal cost of production must increase if the marginal product of the variable resource is decreasing.
What is difference between fixed cost and variable cost? Does each type of cost affect short-run marginal cost? If yes, explain how each affects marginal cost.
Also, you must decide how far apart to space the plants. Will diminishing returns be a factor in your decision making? If so, how will it affect your decisions?
Draw new budget line, a new point of equilibrium and consumption level of Goods A and B. What is Chris's marginal rate of substitution at new equilibrium point?
If two goods were perfect substitutes, what would the indifference curves look like? Explain.
How do you think that change will affect the demand for the product? Will demand for any related products be affected?
Analyze what can you say about the marginal valuation that consumers place on the 300th shirt, the 700th shirt, and the 1,200th shirt they might buy each year?