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A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but in which firms are operating below their minimum efficient scale. Explain the long-run adjustments that will take place for the industry to attain long-run equilibrium with firms operating at their minimum efficient scale.
Suppose that macroeconomics forecasters predict that economy will be expanding in near future. How might managers use this information.
illustrate what does the efficient market hypothesis say will happen to the price of the stock when the $4 loss is announced.
If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.
How long will it take, in months, to pay off the balance, if the cardholder continues to make payments of $110.25 per month and adds no other charges to the card?
Write down the profit maximization problem of the representative firm. What is the new short run equilibrium price and production.
Electrocomp incurred an oversupply of fans in the preceding period, management also insists that no more than 80 fans be produced during this production period. Resolve this product mix problem to find the new optimal solution.
How much profit does each firm earn. Ignoring antitrust considerations, would it be profitable for your firm to merge with Fasten It If not, explain why not; if so, put together an offer that would permit you to profitably complete merger.
If the current price of its product is $80 also there is no change in quantity if price is increased, illustrate what must the new price be to achieve the goal.
illustrate what is the minimum range within which the sample average failure rate must be found to justify with 95% confidence the advertised failure rate of 0.5%.
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
How does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil? Explain, using economic terms, why this is so.
What benefit do economic models provide to decision makers seeking to manipulate economic conditions? In your posts, specifically address the models GDP, GDI, and their major components.
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