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Given a perfectly competitive firm in the output market where: P0 = exogenous price, C(Q) = cost function where: C' > 0, C'' > 0.
(a) State the firm's profit function in terms of Q.
(b) Find the F.O.C. that maximizes profits at Q*.
(c) Interpret the F.O.C.
(d) Find the S.O.C. that maximizes profits at Q*.
(e) Interpret the S.O.C.
(f) Find dQ*/dP0 using the implicit function rule on the F.O.C.
(g) Interpret the derivative in (f) economically.
A large rear dump truck working in a coal mining operation under good conditions has a present purchase price, compute the estimated repair cost per operating hour.
Given major housing boom that contributed to economic growth in the United State from 2003 through 2008, some of revenues that local governments received were from development impact fee.
What is the distinction between net investment and gross investment? Which is the total amount spent on investment in a given year? Which is the change in the capital stock?
The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.
The Joe firm is experiencing financial problems. Its dividends and earnings are falling at a constant rate of 7 percent per year. It's stock just paid a yearly common stock dividend of $1.50 per share;
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Compute the amount of profit (ignoring exchange rate fees) that will be earned and the percentage return achieved.
You are the manager of a small U.S. firm that sells nails in a competitive U.S. market (the nails you sell are a standardized commodity; stores view your mails as identical to those available from hundreds of other firms).
Estimate whether each of following, other things held steady, would lead to an rise, a reduce, or no change in long run aggregate supply, and Describe difference between the government purchases multiplier and the net tax multiplier.
Provider B does not have a fixed service fee but instead chaarges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qd= 150-50P is the price of the minute?
Illustrate what other business decisions are impacted as well, and how. Explain.
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing and able to pay for this outputis $40 per unit. If it priduces this output, the firms a..
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