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It is often argued that the existence of increasing returns is a source of conflict between countries, since each country is better off if it can increase its production in those industries characterized by economies of scale. Evaluate this view in terms of the external economy model.
a. Determine the following measures at all levels of output: MPL, APL, TFC, TVC, TC, TR, AVC, ATC, AFC, MC, PROFIT b. At what level of output is the profit maximized c. What kind of observations can you make about MC, the product price , and the wage
For the economy as a whole, what percentage of firm revenue is spent on advertising?
Dr. Leona Williams, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Williams enjoys a rather substantial degree of market power in this market.
What are the implications of these trends for managerial decision making in the copper industry?
The golden rule capital per worker k^GR is the level of capital per worker that maximizes consumption per worker at the steady state. Write the expression of the steady state consumption per worker c* as a function of k and derive the golden rule ..
Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produces for $25. The current market price for input X is $100. ..
When it is 105 degrees outside and you get thirsty, how much you willing to pay for a 16-ounce bottle of water. If the price is $1.50 per bottle, do you have a consumer surplus or is there a producer surplus or both
Concerning the cost effect of a price hike, what is the consultant assuming about your firm and its customers?
Based on the transition matrix for ECB, which positions are experiencing a labor surplus or a labor shortage?
Examine externalities and/or unintended consequences of such intervention.
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee
GKX Industries expects sales of its hydraulic seals (in inches and metric sizes) to increase according to the cash flow sequences $70+4k, where k is in years and cash flow is in $1000. What is the amount of the cash flow in year 3
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