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The cost function for a firm is given by TC = 6,000 + 12.5Q. The firm sells output in a perfectly competitive market and other firms in the industry sell at a price of P = 25 - 0.5Q. (i) What level of output should be produced to maximize profits?
The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulti
Albert and Franco both follow the life-cycle hypothesis: they smooth consumption as much as possible. They each live for five periods, the last two of which are retirement. He
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
Describe (briefly) the trends and fluctuations in the unemployment rate in the United States from 1949 through 2013. In which periods was the unemployment rate above average a
Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in
Bayer Schering Pharma AG, Germany owns the Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, s
Some estimates are that immigration has increased the US labor force by 10%. Assume that the labor supply native and immigrant workers are both completely inelastic. By what p
Initially, two steel firms are each releasing 100 units of pollution, for a total of 200 units. The government wants to reduce emissions by 40%. The steel firms have the follo
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