Problem related to perfect competition
Problem: Under perfect competition, a firm is said to be in equilibrium when its profits are maximum, which depends upon cost and revenue of the firm? TRUE or FALSE?
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Diseconomies happen when the firm extends production beyond the optimum combination of factors; it becomes too big to manage
A new tax of $0.10 per pack of gum decreases the equilibrium quantity from 100,000 packs to 95,000 packs. How much revenue does the government collect on tax
Problem: Utility of a good is the same from consumer to consumer. TRUE or FALSE?
Carla Vista Casino Company earned $23,472,000 before interest and taxes last year. What are the marginal and the average tax rates for this company?
Under perfect competition, a firm is said to be in equilibrium when its profits are maximum, which depends upon cost and revenue of the firm?
Compute the price and yield to maturity of a three-year, 4% annual-pay, $1,000 face value bond given following spot rate curve: $1 = 5%, $2 = 6%, and $3 = 7%.
In this market, every seller is monopolist selling his differentiated products? 1) Monopolistic Competition, 2) Imperfect Competition 3) Perfect Competition?
And if the yield increases by 50 bps, price will decline to $866.80. Based on these price and yield changes, calculate the effective duration of the bond.
Problem: One of the costs of punishing bribery is higher wages for government employees. Explain.
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