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I'm asked to sketch the average and marginal cost curves of a software company, in which when it first starts up, the costs are extremely high.High start up costs, millions of dollar spent to make the software But after it has made the software, the costs in distributing it to customers "entails low incremental costs that is virtually zero". So should the MC and AC curves be U shaped or can they simply be sloping downwards because of the economies of scale?
How should the curve look like?
Increasing jet fuel values recently led most major United States airlines to raise fares by approximately 15%. Describe how this substantial increase in airfares would affect the following;
Calculate the profit maximizing price and quantity of subscriptions for the U.K. and indicate each on the appropriate graph. Do the same for the U.S.
Project labor authorization for January 2017 and What is the estimated budget for the recruitment exercise if the estimated cost of recruiting one employee during the period would be k1500.
Why is it not surprising to find that in the oligopoly which sells basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
Is there too much or too little smoking? Explain why smoking bans on bars and restaurants do not efficient solve an externality problem.
Calculate the market demand for strawberries and plot it on a graph. On the same graph plot the supply function using the data in column A. What are the equilibrium price and equilibrium quantity?
A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..
Assume that the government proposes to cut taxes while maintaining current level of government expenditures. To finance this deficit, it may either
When the two countries didn't specialize the total production of jeans were 23 million pairs and a total production of rye was 68 million bushels . because of specialization the total production of jeans has increased by ______(3,6,9,12 million)..
Discuss all of the Pros and Cons of making the decision to buy a new car and we require to consider about macro & microeconomics and any other psychological, sociological or business concepts that may affect the decision.
you must identify a franchise that is relatively new (less than 10 years old and fewer than 25 locations in Canada). You must then evaluate the attractiveness of the franchise for an identified location. The evaluation should include: Presentation ..
What motivated the producers of all the individual products in the store to make them and offer them for sale How did the producers decide on the best combinations of resources to use Who made those resources available, and why How does the market..
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