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1. A firm has a lower average cost of production today than it did one year ago, without any changes in the quality of the good produced. The prices of inputs to production are unchanged. It follows that this decline in average cost must be the result of learning.
2. In the Cournot model with entry, there is always too little entry (that is, less entry than is efficient). Could you please explain whether it is true false or uncertain, could you explain please.
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
Why did the grounding of aircraft cause the Fed to act? The chapter lists the duties the Fed must perform. Which duties are mentioned in the article? What forms did liquidity take?
Suppose an individual's marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is $1.00 and the price of a slice of pizza is $1.50, is the consumer maximizing..
Suppose there are 9 firms in the photographic film industry with corresponding market shares as given in the table above. Under present merger guidelines with respect to industry HHI and the change in HHI resulting from a merger
A retailer finds that the demand for a very popular board game averages 100 per week with a standard deviation of 20. If the seller wishes to have adequate stock 95% of the time, how many of the games must she keep on hand?
A rural stretch of a two lane road in Loudoun County is to be refurbished or a new route established. The existing road, E, will cost $3,000,000 and the new route, N, will cost $5,000,000. Annual O&M costs will be $120,000 for E and $90,000 for N...
Compute and contrast the way Keynes and Friedman approach the economy. What are the key differences and similarities.
Assume a company expects that a $20 million expenditure on R&D will result in a new product that will rise its revenue by a total of $30 million 1 year from now.
Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:
A commercial bank made a 5-year term loan at 13 percent. The bank"s economics department forecasts that 1 and 3 years in the future the 2-year interest rate will be 12 percent and 14 percent, respectively
1. Explain Opportunity Cost and provide an example. 2. What is the difference between absolute advantage and comparative advantage? What is the benefit of trade?
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