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Q. (a) Let a typical consulting firm has production function f (L) = 10000L1/2 and firm also incurs a fixed cost of 1000. What is this firms total cost function, average cost function, average variable cost function and marginal cost function?
Q. Suppose Qd=-15*P+Income+2500 and Qs=8*P-Pinputs-500. Originally Income=885 and Pin puts=57. Suppose Income increases to 1022 and Pin puts increases to 117. How large is change in equilibrium price?
Suppose there is an early freeze in California that reduces the size of the lemon crop. Elucidate what happens to consumer surplus in the market for lemons.
Illustrate what is the demand schedule for Belgium cocoa beans now which U.S. consumers can also buy them.
Suppose that they are thinking of every specializing completely in the area in which they have a comparative advantage also then trading.
Using this demand function, find the total revenue function. What is the shape of the total revenue function.
What amount should be amortized for year ended December 31, 2007. On January 1, 2007, Alatorre incurred organization costs of $275,000. What amount should be expensed in 2007.
Compute accounting profit. What are the opportunity costs for the manager of being in this business relative to returning to his old job. Illustrate what is the economic profit of the business.
Suppose that in year 2008, the money supply is $400 billion, nominal GDP is 9 trillion, and real GDP is $4 trillion. Illustrate what is the price level. What is the velocity of money.
What is expected salary of a CEO who has been with company for years. Construct a 95% confidence interval on prediction for average CEO who has been with company for 10 years.
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
A developer has recently offered US Airways 2.5 million for the land. Should US Airways gives training facility at this locations.
suppose that the other firm holds its rate of output constant, solve for the optimal output of each firm. What is the total profits of the two firms.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
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