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You are the economist of a firm with market power. The inverse demand for your product is given by P= 200 -10Q and your marginal cost is 5 + Q. a. What is the profit-maximizing level of output? b. What is the profit-maximizing price?
Why might learning by doing decrease the long-run average cost of production?
Calculate point price elasticity a a price of $3 and calculate the point price elasticity at a point of $9. Is the demand price elastic or inelastic at these points?
Find the effects of the increase in the expected future MPK on current output and prices from the AD-AS diagram based on the misperceptions theory. What accounts for the difference with part a?
We discussed in class several of the dependent variables that need to be considered when managing people (performance, job satisfaction, turnover, absenteeism, organizational citizenship behavior, deviant workplace behavior). Select two of these and ..
A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $33 per hour each, can individually assemble the test equipment i..
mechanical engineer who recently graduated with a masters degree is contemplating starting his own commercial heating
The average girl on this planet walks 4 miles a day carrying 5 gallons of water for her entire family to use (for the day). How far did you (apx) have to walk this morning to get your first sip of clean water?
Q. Explain how and why a monopoly would try to price discriminate. Serving food on weekdays to business people and retired people.
Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted by M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = m5 B5 and wants to produce 10 barrels of pale ale this week. How..
Question 1: Consider the following sequential-move game between Ann and Bob.
The firm is going to borrow the money for its capital purchases. The interest paid on the debt can be added to accounting costs. Suppose it turns out that the present value of this expense is .10 for every dollar of capital purchased. What is the ..
Short run refers to a period of time during which:
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