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In 1971, Congress conducted headings on emergency loan guarantee legislation for Lockheed Corporation, which was in the middle of a severe liquidity crisis due to losses on a number of military contracts. The loan guarantee was intended to allow the company to complete development of the L-1011 Tri-Star program (production of a new commercial aircraft). One estimate of the average cost (in millions of dollars) per aircraft during the program was AC = 100(TQ) -.5 = 100/SQRT(TQ), where TQ demotes the total number of aircraft produces to date. What is the average cost of the first aircraft> The 2nd? The 49th? The 100th? For every doubling of cumulative output, by what percentage does average cost decline?
Describe a sequential game facing your firm, and represent it in extensive or tree form. Compute and analyze the equilibrium of the game.
Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..
What is business cycle? Describe the four phases of the business cycle. Where on the business cycle do you think the U.S. economy is today?
You are a manager of a large but privately held online retailer that currently uses 17 unskilled workers and 6 semiskilled workers at its warehouse to box and ship the products it sells online.
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Draw a graph of the Batman family's supply of loanable funds curve fro 1999. Show the influence of this change on the Batman's supply of loanable funds curve.
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
The winners of the Nobel Prize in economic science were recently announced-who were they? For what contribution to our understanding of economics were they recognized?
For several years, Palm was the dominant manufacturer of PDAs (personal digital assistants). However, a number of other manufacturers have since entered the PDA market.
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is.
Write down his budget constraint and a utility function that captures his preferences. Draw his budget constraint and three of his indifference curves.
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
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