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TC(Q) = Q2+3Q+20.
a. Explain if this cost function satisfy law of diminishing returns.
b. Let p = 33 be the firm's demand function. How much should this firm produce to maximize its profit?
Suppose you loan $5,000 to a friend to help him start a new restaurant business. Your friend signs a promissory note at a simple fixed interest rate of 5% per year. This note requires repayment in one lump sum five years from the date of the loan. Ex..
At this level of pollution, what is the marginal cost of pollution control.
Due to the guarantee, the firm can borrow $50 million for five years at 8 percent interest rate per year instead of 10 percent per year.
Shareholders are special because they provide capital. But, debt holders, including banks and bondholders, clearly also provide capital. Moreover, employees provide human capital, while suppliers and vendors provide raw inputs, often with generous cr..
Suppose that the position of a nation's long-run aggregate supply curve has not changed, but its long-run equilibrium price level has increased. Which of the following factors might account for this event? (See page 232.)
You borrow $25,000 from your local credit union at 12 percent compounded monthly. You repay the loan by making equal monthly payments over the next four years. How much interest is in the 23rd payment?
A central bank that prefers to use monetary policy to target interest rates consistent with domestic goals--low inflation, low unemployment, and high growth--will most likely pursue:
The Dallas Electronics Company is considering replacing an old, 1,000-pound-capacity industrial forklift truck. The truck has been used primarily to move goods from production machines into storage. Calculate the after-tax present value of owning the..
Indicate the various components of GDP when it is derived by the resource cost-income approach. Calculate using the resource cost-income approach.
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Find the long-run equilibrium in this market and determine the consume..
Explicidate that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale as long as there is some point that yields a positive profit.
Define carefully the concept of a nation's external wealth and explain how it varies with the current account and capital gains on external wealth.
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