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1. Because industry X is characterized by perfect competition, every firm in the industry is earning zero economic profit. If the product price falls, no firm can survive. Do you agree or disagree? Discuss.
2. An increase in the demand for video films also increases the salaries of actors and actresses. Is the long-run supply curve for films likely to be horizontal or upward sloping? Explain.
3. True or false: A firm should always produce at an output at which long-run average cost is minimized. Explain.
Using the information from the completed table and the graph to identify the three stages of production and explain why the firm's short run production has only one 'rational' stage of production
Given the economic situation today, outline the discretionary fiscal policy you would promote if you were president. In terms of the AD-AS model.
Summarize the differences between the four market types. Provide a general explanation of how business may maximize profit within each market type.
Compute the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect t..
What is the difference between a price ceiling and a price floor? What will happen if a price ceiling is imposed below the market equilibrium? If a price ceiling for a good is set below the market equilibrium
Suppose that the goverment of the city of Udellum, wich has a Baa credit ratng issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds. Suppose that investors have a federal tax rate of 30 ..
Determine which country has absolute advantage in production of tanks and explain why is it this country?
Prepare a brief paper defining direct and indirect channels of distribution. Discuss what are the key advantages and disadvantages of each channel for your company?
Explain the major risks involved in subcontractor contracts. Then, determine which of the risks involved holds the most risk to the subcontractor. Support your response with evidence or examples.
Currently the foreign earnings of U.S. multinational companies are taxed only when the income is returned to the United States. Taxes are deferred if the income is reinvested abroad. The department seeks a tax rate that will maximize total tax reve..
The U.S. Department of Education reported the following number of bachelor's degrees awarded now what is the annual arithmetic mean number of degrees awarded?
Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers of this product represent an antitrust market, or do additional substitut..
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