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Morgan company’s marginal cost curve is: MC = 4+3Q Where MC is marginal cost and Q is the number of units of its product. The price of a unit of its product is $3. A consultant hired by the company argues based on the evidence, the firm would make more money by shutting down. Do you agree? Explain.
q1. how was de beers able to control the world price of diamonds over the past several decades even though it produced
In which of the subsequent ways does government involve the consumption component of planned cumulative expenditures.
Suppose, alternatively, that leisure and consumption goods are perfect substitutes. In this case, an indifference curve is described by the equation i = al + bC, where a and b are positive constants, and u is the level of utility. Show what the consu..
Draw, on a large graph, a market for apartments in equilibrium, and then apply a binding rent control. Explain and indicate how the relevant economic agents are affected by the application of this price control, and why economists say rent control is..
The type of planning conducted on a long-range basis by top managers is usually called
A bank currently has $70,000 in deposits, $6,000 in cash in the vault, $12,000 on deposit with the Fed, and $7,000 in government securities. The required reserve ratio is 20 percent. f these expansions in the money supply happen, what effect will it ..
Corporation X is in the business of buying, restoring, and selling vintage cars. A local man attempts to sell to corporation X a vintage car, estimated to be worth $50,000, for the price of $1000. If the president receives the offer but, instead pres..
Consider a perfectly competitive market where demand is given by P=84.20-2.15Q and supply is given by P=12.78+1.20Q. Calculate the equilibrium quantity and price.
Metro claims that at the time of its loan it was unaware of HFCs interest. Between these parties, who has priority to the collateral? Discuss your answer.
Draw a correctly labeled aggregate demand and aggregate supply graph illustrating an economy in long-run macroeconomic equilibrium.
Analyze how a bartender would know which the price of an exotic drink was too low or too high. Provide adequate conceptual justifications.
Explain the aspects of expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate?
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