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Suppose that you are having a discussion with a manager from a profit-maximizing firm about choosing the appropriate level of output for his firm. The manager says that his business has exceptionally high fixed costs. He explains that he attempts to mitigate this fact by producing more units of output in order to “spread” these costs over many units of production (i.e., he is attempting to lower average costs). As a seasoned economics student, what would you tell this manager about his approach to choosing his business’s output level, ceteris paribus?
The Fed can reduce the money supply by,
Your cat just won the local feline lottery to the tune of 3000 cans of "9-Lives" cat food (assorted flavors). A local grocer offers to take the 3000 cans and in return, supply 30 cans a month for the next 10 years. What rate of return, in terms of no..
Illustrate what do laws of supply and demand predict would be result of an immediate removal of minimum wage in terms of price of labour and quantity available.
Elucidate what is the best form of business organization to select based on various considerations, including taxes, liability, capital contributions, sharing of profits adn losses, management and control, and survivorship
Determine if the firm's mix of inputs is optimal. Explain. If your answer to "b" is no, what should the firm do to improve its performance? Explain.
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run aggregate supply curve can never shift. Either a decrease in the nominal money supply by the Federal Reserve, all else held..
You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently unde..
explain why sharp decline in oil prices might not necessarily have positive or negative impact on the US equity markets (stock market) even at the current trend of volatile oil prices
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.
Bread and butter are complements. A decrease in the price of bread results in a(n)
In the spring of 2002, lettuce price doubled from about $1.5 to $3 per head. The reaction of one consumer was quoted in newspaper article; "I will not buy lettuce when it is a $3 a head" she said, adding that other green vegetable can fill in for let..
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