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1. Which types of firms would normally maximize profits along with real-life examples?
2. Should a firm shut down if its weekly revenue is $2,000, its variable cost is $1,000, and its fixed cost is $1,600, of which $1,200 is avoidable if it shuts down? Why?
3. A producer of ballpoint pens has been purchasing ink from an ink supplier and its considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government taxes ink? Please explain.
How would you characterize the competition (market structure) in the restaurant industry? Are there submarkets? If so, do these submarkets have distinct competitive pressures? How may a restaurant maximize profits?
Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum
If the price elasticity of demand for steel is greater abroad than it is in Japan, which of the following will be correct?
Draw the budget line for the following situation. You have an income of $30 to spend on pumpkin scones and triple vent sugar free, non fat, no foam, extra caramel, with whip, caramel The are $5 each and each scone is $3, but the store is running a pr..
Compute the marginal revenue when the price elasticity of demand is −0.25.
The purchase of government securities by the Fed from the public will begin a contraction in commercial bank lending. Provide an explanation. Define liquidity. Rank the following assets in order of their liquidity:
Should companies have a big role in improving the world? Do you think the pharmaceutical businesses have a social responsibility to make drugs that will combat diseases that are a result of poor living conditions, even though profits will be limited?..
In 1990, the ratio of Japanese to US labor productivity in the steel and consumer electronics industries were estimated to approximately 1.4 and 1.12. What country has the comparative advantage in producing steel and what country has the comparative ..
Explain how to get the producer surplus. What about the area that lies beneath the x-axis.
Why do 20-years bonds issued by the US government have lower rates of return than 20-year bonds issued by corporations?
Why is depreciation added to net income in the Operating Activities category of the statement of cash flows when the indirect method is used? Depreciation provides cash and therefore must be added to net income. Depreciation reduced the book value of..
A pure competitive star industry consists of a large number of independent firms producing a standardized product A. determines the average cost function? Define the profit function for the company that is at an equilibrium position if we know,that t..
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