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Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry. In the long run, what do you expect will happen to
a. Your firm's cost of production? Explain.
b. The price you can charge for your remodeling services? Why?
c. Profits in home remodeling? Why?
Cartwright Computing expects to order 600,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; What is the economic ordering quantity for chips? How many or..
q.there are two identical firms in an industry. each firm uses a cournot strategy to maximize profits. if the best
q1. use the following general linear demand relationsqd 100 - 5p 0.004m - 5 pr where p is the price of good x m is
What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
Provide the information, is it surprising that the company's revenueincreased when it decreased the average selling price of its phones.
Currently, boats rent for $500 per day and workers cost $100 per day. Suppose your company decided purchase 12 shrimp boats (Jenny 1 - Jenny 12). These boats are a fixed resource for the firm. Illustrate what is the short run total cost of produci..
Smith suggests that division of labor leads to increased production through three different avenues. Explain. “It is the great multiplication of the production of all the different arts in consequence of the division of labour, which occasions in a w..
q. in this problem we consider the differences between the competitive monopoly and cournot equilibria under the same
Suppose a firm takes two inputs, labor and capital, as perfect substitutes. In addition, this firm can substitute one labor for one capital. If wage is $2000 and rental rate for capital is $3000, what is the optimal labor and capital usage for this f..
q. answer the following question using the keynesian model of a closed economy. suppose the federal government would
An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:
You pay $100 for a 10 year 6% coupon bond with a face value of $100. You hold the bond for one year and then sell it (you buy a 10 year bond then a year later you sell a 9 year bond). If interest rate falls from 6% to 5% what is your return from hold..
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