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Assume that the market for wheat is perfectly competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by T C = 1+Q+Q2 , which results in marginal cost of MC = 1 + 2Q
A) How much profit does each firm earn?
B) What is the shut-down price for the firm?
The GenaCam Stores have two branches. Advertising is a major component of Cost of Goods Sold for each store. You have information on the range of advertising expenditures over
Suppose a ?rm’s produces computers and its associated costs are only function of the numbers of computers its produces. The cost function is given by C(y) = y3−8y2+32y. Find t
An economy has the following eqn for the Phillips Curve: pi=Epi - .5(u-6) People form expectations of inflation by taking a weighted average of the previous 2 years of inflati
A country which does not tax cigarettes is considering the introduction of a $0.40 per pack tax. Calculate the deadweight loss from the tax. Could the tax be justified despite
Do you consider yourself an early adopter when it comes to trying out new products or new fashions, or do you tend to take a wait-and-see attitude? How does your attitude towa
To Vote or Not to Vote: Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote fo
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the
The U.S. Department of Commerce has estimated that if U.S. manufacturers use metric measures, their increased ability to compete on world markets should increase by about $600
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