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In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is a positive area between the long-run industry supply curve and the long-run equilibrium price. What does this area represent?
Suppose that the market demand curve for a new drug is represented by P = 100 - 2Q, where P is the price in dollars per dose and Q is the annual output. (The marginal revenue curve is MR = 100 - 4Q).
Although all appliances are given a unique serial number when manufactured, until this year Armonco had no capability of determining how often any appliance was brought to an authorized service facility. At the beginning of the year.
A principal hires an agent to run a business for one year. The agent can exert high effort or low effort. High effort lowers the agent's utility by 10,000. Low effort is costless. If the agent exerts high effort, the business makes a profi t of $..
If you were a manufacturer that issues coupons, what factors would favor using the Cents Off website for distribution rather than the traditional Sunday newspaper insert?
What is now the after-tax return on capital invested in country 1? What is the equilibrium interest rate and allocation of capital across countries? Find the total income received by capitalists and workers and the tax revenues in country 1 as a f..
Your readings offered some insight into the forces that drive companies to expand globally. Based upon the readings, what are the three sets of forces that drive, constrain, and shape entities to compete globally?
Monopoly manager has the demand and cost functiones as P=200-2Q and C(q)=2000+3Q2 1- calculate the maximum profits 2- what price-quantity combination maximizes the profits 3- at the profit-maximizing price-quantity combination, what is the demand ela..
What are ( a) preferred provider organizations and (b) health maintenance organizations? In your answer, explain how each is designed to alleviate the overconsumption of health care.
The university is selling bonds to cover the cost of a new power plant for UAF. The face value on the bonds is $100 million and is to be repaid in 10 years with coupons paid annually. There is a 15% chance the effective interest rate will be 5%, 2..
Suppose Thimajigs have a variable cost of $10 per unit and currently sell for $25. Price elasticity of demand for Thimajigs Et = -3.0 (A) Is the firm charging the optimal price for Thimajigs Demonstrate how you know.(B) Should the price be changed I..
determine the two equal deposits the first deposit required now and the second deposit at the end of year 6 so that you
Illegal discrimination results from behaviors or actions by an organization or managers within an organization that cause members of a protected class to be unfairly differentiated from others.
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