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In 2008, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4. What was the equilibrium price of a box? Is th
Derive the average cost of producing 100,000, 200,000, 300,000 and 400,000 devices per year with Plant A. Derive the average cost of producing 100,000, 200,000, 300,000 and 400,000 devices per year wi
The firm has a marginal income-tax rate of 40%. The firms cost of capital is 12%. Compute the internal rate of treturn and the net present value. Should the firm accept or reject the project?
At which time you will be able to sell it for $5,000. If interest rates are 10%, what is the maximum amount you should pay for this machine?
Sets one price for chicken (regardless of who buys) and one price for biscuits (regardless of who buys), what would those prices be?
What Suppose that you buy a bond for $100 that pays 4 percent interest per year. How much money will you have earned when the bonds reaches maturity in five years?
Explain how the production possibility curve can be used to analyse the fundamental economic challenges of scarcity, choice and opportunity cost.
Money GDP are associated with changes in interest rates. Theoretically, how could changes in the money supply be used to keep interest rates at the same level?
Discuss the returns to scale, marginal product of inputs, and technical rate of substitution. (hint: show that whether they are increasing, constant, or decreasing)
If the full capacity is infinite, how would the owner organize the production, and what is the output level? And the profit?
When there is only monopolist informal moneylender, what are the interest rates for $250 loan (i250) and $200 loan (i200)? When there are only competitive formal creditors, what is the interest rate (
Explain and illustrate how each of these events would affect aggregate demand, aggregate supply, and prices, then explain how you would respond with economic policies.
If P=$25 and I=$1,000 curerrently, then: a. skin care products are a normal good. b. the elasticity of demand is equal to 11. c. skin care products are inferior. d. the price is too high.
Using one or more of the principles of economy-wide interactions covered in the lecture, in not less than 250 words explain how government intervention can help in this situation.
Proxy variables and instrumental variables.what is the difference between a proxy variable and an instrumental variable? when would you use one and when would you use the other
What special challenges will you face when operating in a perfectly competitive market? As a manager, how would your hiring practices differ across these two type of market structures?
Which is founded on the belief in a simple life of working less and spending less. Do Americans who belong to this movement follow the principle of rational choice?
Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement.
What are the highest and lowest payments from the writer that the bookkeeper farmer team will accept for the 6th day? Assume that the farmer can dispose of $7 from the writer as she wishes.
What is the maximum amount this bank can expand its loans? What will happen to the M1 money supply if it makes the loans in (b) above and those funds are deposited into another bank by the borrowers
Expain the statement, "Fixed costs exist only in the short run. In the long run there are no fixed costs."Why might the time frame for the "short run" differ from one industry to the next?
At what rate does aggregate output, aggregate consumption, aggregate investment, and per- capita income grow in this steady state. Explain.
Devise a hypothetical business situation in which buying a lookback giving the holder the right to buy or sell the underlying at the highest or lowest price it has attained over the life of the optio
You only recieve 6% on funds you have deposited in the bank. Do the opportunity costs of borrowing and using your own funds differ in this example? Why or why not?
short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30. Is this firm making the profit-maximizing decision? If not, what should it do?