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Producer Theory:
If asked to find a supply function for a firm in the long run, the easy for doing it is to compare AC to MC. In some cases though, that does not give the correct answer, and the profit function must be used. Can you advise in what cases this is true? When should I use a profit function, (and not the MC=AC shortcut), in order to find the supply curve of a 2 input firm in the long run?
Explain the design of a public policy that would subsidize the private performance of the R&D (to ensure that the research is done by the private sector) yet would minimize the public funds used.
a smaller multiplier means that change in government purchases of goods and services, government transfers, or taxes necessary to close an inflationary or recessionary gap is larger. How can you explain this apparent inconsistency.
How does the concept of capabilities to function' help us gain insight into development goals and achievement? Explain its contribution in measuring level of development.
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. What are the..
Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total revenue. Also, compute the maximum amount of total revenue received by t..
A drought in Alberta and Saskatchewan has made grain, and therefore cattle feed, quite expensive. Many ranchers cannot afford to feed their cattle, and have sold much of their herd for slaughter. As it happens, the slaughter of beef cattle has coinci..
During the construction of a highway bypass, earthmoving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4 year project, the equipment will be sold for $20,000. The schedule for moving fill ..
Distinguish between the resource market and product market in the circular flow model. In what way are businesses and households both sellers and buyers in this model.
Illustrate what percentage does equilibrium cost level differ from its initial value if output increases to Y = 106 (and r remains at 0.10).
studies on the comparative work habits of the wealthy tell a different story. Research by professors Mark Aguiar. Explain which wealthy person has reservation wage.
Social Responsibility: To include intercultural competence, knowledge of civic responsibility, and the ability to engage effectively in regional, national, and global communities. Why is active economic citizenship particularly important for a succes..
At the equilibrium point in the above graph, which of the following is false?
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