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A competitive firm uses two variable factors to produce its output, with the production function y = min {x1/2, x2}. The price of factor 1 is $4 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 20 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the lowest price that would make a firm willing to produce a positive amount?
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to the owners is the difference between the total value and the amount owe..
Utilize the information from the completed table also the graphs to identify the three stages of production also explain why the industry's short run production has only one ‘rational' stage of production.
Define the equilibrium of a market. Describe the forces which move a marketplace toward its equilibrium.
Steven consumes only two goods, both of which are normal goods. He is maximizing his utility in consumption of both goods. Now assume the price of one of the goods increases. How should Steven's consumption change?
Fill in the column of marginal products. What pattern do you see. How might you explain it. Compare the column for average total cost and the column for marginal cost. Explain the relationship.
Explain why savings is unlikely to equal intended investment in the Keynesian model. Equilibrium GDP is $5000 while full employment is $6000. What kind of gap is this? What would the Keynesians say the government should do?
q1. briefly summarize this loanable funds theory in your own words. identify at least one important entrepreneur that
q.suppose the market demand for apples is given by qd 1600-100p and there are two firms operating in it each with a
If each nation grew at a constant rate over these years, in which year did the U.S. overtake the U.K. in terms of average income.
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
Elucidate how important is a rapidly expanding domestic market in Alibaba.com's strategic assessment
An In the News article is titled "Where Do Start-ups Get Their Money?" Venture capital is important to an economy because it
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