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Suppose Frank is a monopolist in the garden gnome market and is producing his profit-maximizing level of output. Suppose further that at this level of production his average total cost is $150, his average variable cost is $130, and the price of one of his gnomes is $160. It can be concluded with certainty that the marginal cost of the last gnome Frank sold was _____, everything else held constant.
1. greater than $160
2. greater than or equal to $160
3. $160
4. less than or equal to $160
5. less than $160
calculate the standard deviation of the distribution of each investment. Which of the two investments is more risky?
This question may require some research. The US-Mexico Bracero Program was eventually opposed by:
determine the breakeven output and total sales revenues. determine the output that would generate a total profit of $60,000 and the total sales revenues at the output level (Do not draw chart)
In 2010, 500 radios were produced and 100 computers were produced. price of radio was 100 and computer was 1,000. In 2015, 550 radios were produced and 900 computers were produced and price of radio was 150 and price of computer was 400 Compute the p..
This will be a real challenge, but it should be an interesting challenge. Much of the way we measure risk relies on probability distribution. For many things in life, and business, this is perfectly valid, but for others it is not. Can you come up wi..
Consider decision making process used by consumers as they budget their money to maximize use of their resources.
describe several different fixed costs and variable costs associated with operating an automobile.
Explain why you would not offer a loan to the next individual who applies for a car loan at your local bank at a higher interest rate than the bank pays on certificates of deposit.
Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative B will cost $35,000 with an operating cost of $4,000 per year and a salvage value of $7,000 after 5 years. At an MA..
Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have
What are the steps that the Fed can do to stimulate the economy? What are problems with those types of policies? How do you know that they will work?
Illustrate what does this suggest about demand elasticity for drugs. Could it be that this experiment didn't actually measure elasticity very well and that elasticity is quite large.
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