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1) The average variable cost is AVC = 3500 - 6Q + 0.005Q2
a. If the industry is competitive, estimate the shut down price.b. If the market price is below the shut down price, regardless of fixed cost, explain why the firm should shut down.c. Using this information, draw the firm's short run supply function.
2) The price elasticity of demand for a textbook sold in the United States is estimated to be -2.0, whereas the price elasticity of demand for books sold in overseas markets is -3.0. The U.S. market requires hardcover books with a marginal cost of $24.00 while the overseas market is normally served with soft-cover texts having a marginal cost of only $18.00. Calculate the profit maximizing price in each market. How might these prices become equal?
Identify that a risk averse agent offered terms worse than actuarially fair will not choose to insure fully.
Examine whether the raise would have a huge impact on hours worked. you have the resultsof studies conducted for three other companies.
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
I'm trying to discuss whether integration between the following types of firms would constitute a horizontal, vertical, or conglomerate merger.
As advisors insists that this would not work, another advisor thinks it's good policy. Which advisor is correct.
Explain how does the trade deficit impact the U.S. economy. Explain how do changes in exchange rate affect a federal government organization.
Describe why some workers are more likely than others to be laid off or have a harder time finding another satisfactory job.
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Assume the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply.
Elucidate the most important economic indicator affecting your organization and explain why.
Sketch a domestic supply and demand diagrams for a product in which the United States does not have a comparative advantage.
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