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Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? Provide specific examples to support your answers. Does a competitive firm’s price equal the minimum of the average total cost in the short run, in the long run, or both?
In production theory, what distinguishes the short run from the long run? Can these periods be defined in terms of specific lengths of time? Why?
The management of the Delphi Corp. is considering a new method of assembling a carburetor assembly for racing cars. The present method requires an average of 24.0 minutes to assemble a carburetor. What is the calculated t value? What is your statisti..
On December 20, 1989, Dixon opened an account at the Eastman Credit Union with an initial deposit if $1000.00. On February 20, 1990, he deposited an additional $1000.00. If the credit union pays 12% interest compound monthly, how much will be in the ..
Critically examine the importance of cargo handling technology for a developing nation container port attempting to boost trade in order to achieve economic growth.
Productivity is the major driver of economic growth in the United States, accounting for about half of the increase in real GDP over time. Between 1996 and 2001, productivity showed no trend and averaged about 2.7 percent. In 2002, productivity incre..
Why is monetary policy chosen over fiscal policy as the preferred tool for stabilization policy? What does the government gain from controlling monetary policy? Why would they choose to delegate responsibility for monetary policy to an independent ce..
Read Chris Tilly, “Shaking the Invisible Hand” (Real World Micro, article 1.2). What is the “Invisible Hand” theory? What are the political implications? List some of the assumptions made by economists who believe in the “invisible hand” and oppose g..
The law of diminishing returns applies to which of the subsequent segments of the marginal product of labour curve.
Explain how consumer surplus changes when a monopoly price discriminates. Explain how consumer surplus, economic profit, and output change when a monopoly perfectly discriminates.
In the economy of Wrexinton in 2008, consumption was $500, exports were $200, GDP was $1200, government purchases were $250, and investment was $300. What were Wrexingtons imports in 2008?
Critically evaluate measures used by governments and central banks to manage the economies of their countries. By critical evaluation use convincing arguments for or against measures used to reduce, minimise or alleviate economic difficulties many..
Consider the statement, “Monopoly power comes from market acceptance, not from a patent, a prettier product, a slick advertising campaign, or anything else. So rather than spend your time in court, you should be out there drumming up business.”
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