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Electric utility companies usually operate their most modern and efficient equipment continuously (i.e around the clock) and use their older and less efficient equipment only to meet periods of peak electricity demand.
a) What does this imply for the short-run marginal cost of these firms?
b) Why do these firms not replace all their older equipment with new equipment in the long run?
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.
dont tell me weve lost another bid exclaimed janice hudson president of prime products inc. im afraid so replied doug
The Pristine River has two polluting firms on its banks. Acme Industrial and Creative Chemicals each dump 100 tons of glop into the river each year. The cost of reducing glop emissions per ton equals $75 for Acme and $225 for Creative.
What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.
Chris raises cows and produces cheese and milk because he enjoys:
Austria has a history of strong hostility to nuclear power, and over the last twenty years the Austrians have shut down all of the reactors in Austria
A nominal rate of 14% should be used as the MARR. What equivalent annual interest rate is the second contractor offering? Which contractor’s offer would you accept? Repeat the analysis with the NPV technique.
Discuss some of the decisions that you must make in the short run and what might you consider to be your "fixed factor"
Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend
The settlement requires KopyKat to pay the employee $10,000 per month for the next year. Determine the optimal price and output for the firm under these new conditions.
Does a persistent balance of payment deficits result in a pressure to devaluate the currency.
The government wants to eliminate the inflationary gap by changing expenditures. What policy do you suggest? By how much will unemployment change after you policy has taken effect?
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