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Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 350 -5Q, and the firm’s cost function is C(Q) = 8Q. Determine the firm’s equilibrium price and corresponding profits.
Price: $
Profits: $
The cost of 150 H.P. compressors bought five years ago is as follows. For the first 50 compressors the cost was $2,000 per unit, and for the second 50 the cost was $2,400 per unit. Find the cost of 100 compressors of 200 H.P. rating today.
More precisely, buyer and seller play a game in which they report their valuation. The rules of the game are as follows: if the seller reports c' and the buyer reports v', the object is transferred from seller to buyer with probability
The U.S. is in recession and, at last report, GDP was shrinking at a rate of 1% per year. The unemployment rate is rising and now stands at 7%. In recent months, the rate of inflation has been holding steady and is increasing at an annual rate ..
The current market price is $7.50. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should.
At the equilibrium price, the demanded is equal to the quantity supplied. At any other price (called a disequilibrium price) there is either a shortage or surplus. Calculate the amount of the shortage at a price of$ 5.30.
suppose the poorest 90 percent of citizens actually have an income of $15,000 because each receives $5,000 of unreported income from the underground economy. what is the Gini coefficient now?
To increase income by $120 when the slope of the curve showing the relationship among your income and work hours is 8, how many extra hours will you need to work? In a market economy, what encourages firms to develop new products and production proce..
A percentage of chronic heart conditions
If the price level is above the equilibrium price level, how does the aggregate quantity of goods and services demanded compare to the aggregate quantity of goods and services supplied at the price level? Is this a condition of equilibrium? If no..
output per worker yt 4kt 13 the saving rate is 30 percent and the depreciation rate is 13.3 percent. calculate the
Consider the demand for mobile phones. Suppose the price elasticity of demand for the market as a whole is .80. A. If all mobile-phone companies simultaneously increased their prices, will total revenue in the industry increase of decrease
is the savings interest rate of internet- only banks higher or lower than the rate of banks in which your depositsor
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