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1) Class, is it possible for a business to show an accounting profit, but actually earn an economic loss? Why or why not? Give an example. 2) Example : the profit maximization rule is that a firm should produce at the level of output corresponding to the equality of marginal revenue and marginal cost. Marginal revenue is the change in total revenue due to a one-unit change in output. Marginal cost is the change in total revenue due to a one-unit change in output. We can write this rule as MR = MC.
2) QUESTION: Class, what if MR does not equal MC? Why does that necessarily mean that profit is not being maximized? Explain. 3) Class, what are some other important barriers to entry? What are more examples of oligopolies? What do we mean by industry concentration?
if the price of blue toy cars is 5 and the price of pink toy cars is 2 then which of the following consumers will make
tax-exempt debt currently requires an interest rate of 6.2percent and its target capitalstructure call for 60 percent debt financing and 40 percent equity(fund capital) financing The estimate cost ofequity for selected invester-owned health care c..
Likelihood a non-doping rider will get cut from a team for under-performance: 50% Staying clean while everyone else is clean (High Payoff) Expected value- Value of competing for one year: $1 million Expected penalties- None $0 million Staying clea..
Today the average undergraduate student is responsible for paying off a $3,500 balance on his credit card. Suppose the monthly interest rate is 1.75% (21% APR). How many months will it take to repay the $3,500 balance
european governments tend to make greater use of price controls than does the u.s. government. for example the french
If the Fed's inflation target is 2 percent, potential output growth is 3.5 percent, and velocity is a function of how much the interest rate differs from 5 percent: % ? V - 0.5 A (i - 5) Suppose that a model of the economy suggests
Suppose that the market for cigarettes in a particular town has the following supply and demand curves: Qs = P; Qd = 50 - P with quantities measured in thousands of units. Suppose the town council needs to raise $300,000 in revenue
The ABC Company deposited $100 000 in a bank account on June 15 and withdrew a total of $115 000 exactly one year later. Compute: (a) the interest which the ABC Company received from the $100 000 investment, and (b) the annual interest rate which ..
Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it. Also, th..
Suppose the firms play this game for five years in a row, and they know that at the end of five years, both firms plan to go out of business. What is the sub game-perfect equilibrium for this five-period game.
For this week's Discussion, review the differentiate between social marketing and social media. Consider how you might use both of these in your public health program obesity project.
What is the minimum increase in income necessary for the consumer to be as well off under price px = 1, py = 2, as she/he was at prices px = 1, py = 1 Explain why the percentage increase is smaller than the increase in the CPI for the consumer
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