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Under conditions of perfect competition, profits can get squeezed out because of a
a. rising ATC curve
b. higher AR curve
c. higher MR curve
d. lower ATC curve
Point out which costs (sunk cost, incremental cost, fixed cost, variable cost, marginal cost, opportunity cost, out of pocket cost) are considered "relevant" and which are considered "irrelevant" to a business decision. Explain why.
He has an endowment of w1 = 100 and w2 = 0 and faces relative prices p1/p2 = 2. If the relative price decreases to 1, what are the Slutzky substitution and income effects on the consumption of good 1?
If a monopolist produces clear spring water at zero total cost, its total revenue will be maximized where,
Suppose that you are given the information about the spot exchange rate, annual interest rates, and the forward exchange rates between the US Dollar against Japanese Yen and Turkish lira at the given dates in Table 2. Suppose that a US investor wi..
Consider two maple syrup producers that engage in Cournot competition. Inverse demand for maple syrup is given by P(Q) = 16 − Q and the marginal cost of each producer is 4. The two producers compete with each other each period by choosing an amount o..
In the USA buying and selling of human organs is illegal. Those who need organs cannot buy organs from the market and those who donate organs cannot sell their organs. We also know that lot more people are waiting for organs than the number of human ..
Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is.
The review should consist of a summary of the main arguments of the article also an evaluation of the strengths also weaknesses of the article.
As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: (a) a tax that would effectively increase the p..
Amazon’s new tablet computer, the Kindle Fire, has slim margins at its $199 retail price. Admittedly, this product is trying to change the way we read books. Categorize the listed costs as variable or fixed and calculate a contribution margin percent..
Despite recent positive economic news for the US economy, some Federal Reserve officials are still worried about inflation being too low or even the threat of deflation. Why might an inflation rate that is too low be harmful to the US economy? Why mi..
Find equilibrium price and equilibrium quantity by solving equations mathematically. Suppose a Research study is published showing that koby beef increases risk for a heart attack resulting in a reduction of 150 pounds of koby beef consumption per..
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