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Question about competitive market
Why is it that for sellers in a purely competitive market, the price received for each item equals the marginal revenue, while for sellers in imperfectly competitive markets the price received for their product is greater than the marginal revenue?
Assume that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0.
How does the free rider problem explain why telephone companies are usually successful in getting permission to raise their rates?
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is.
Describe what do you mean by the price elasticity of supply.
As an employee of World Bank you've been asked to research the needs of a country with a particular economic concern.
Consider a firm selling two different products at two different plants. The cost function for both plants is given by C (q 1 , q 2 ) = q 1 2 + αq 1 q 2 + q 2 2 .
These costs are depends on a budgeted volume of 80000 units developed and sold every year. Lafluer uses cost-plus pricing methods to set its target selling price.
Fiscal policy refers to the use of government expenditures or tax policy to influence the aggregate demand for a specific purpose.
Explain how does the state of the economy affect federal budget. Explain how can macroeconomic variables inter-relate to each other.
Consider a competitive market for which the quantities demanded and supplied (millions per year) at various prices are given as follows:
Bright Future, Ltd (BF) is a non-profit foundation providing medical treatment to emotionally distressed children. Determine the optimal amount of service provided by BF.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
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