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Suppose that long run costs for firms operating in the industry are given by
Cost LR = 2∗Q
1. What is the long run supply curve for the industry?
2. What is equilibrium quantity in the industry?
3. Can we say something about the equilibrium?
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $30,000 per year. The store is located on prime real estate in a college town. World of Vide..
Compute the present value of a perpetuity bond that pays a monthly cash flow of $1000 at an annual interest rate of 12 percent.
Assume that health production is subject to diminishing returns and that each unit of health care employed entails a constant rate of iatrogenic (medically caused) disease. Would product of health function eventually bend downward
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According to the theory of rational expectations, individuals will respond to expansionary monetary policy by:
As we noted in class, most members of labor unions work in the public sector, industries that are regulated, or industries in which production is concentrated into a few firms. Consider a perfectly competitive industry with many firms that produce th..
q1. a firm hires 2 workers also rents 15 acres of land for a season. it produces 150000 bushels of crop. if it had
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