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Suppose that you have a business in which you hire five workers, to whom you pay $4 an hour. Suppose further that you have overhead costs of $100 a day and that you pay $1 in materials cost fo each item that your business manufactures. Assuming that you keep all five workers, what is your average cost per unit of output if your plant turns out 10 items per 8-hour day? 100 items? 1,000?
Think of an externality in your community. Explain what type of externality it is. How can it be resolved (through the market and/or through government policies)?"
Let a monopolist face a demand function given by P(q) = 40-q and let the cost function be given by C(q) = 50 + q2. Calculate marginal revenue. What price will the monopolist charge, call that price P*? What is the average cost at the quantity of outp..
A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?
Suppose that the government levies a tax on oil companies equal to a proportion of the value of the company’s oil reserves. (The government assures the firms that the tax is for one time only.) According to the neoclassical model, what effect will th..
Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.
Analyze a situation in which both parties entering into a contract could benefit, economically or otherwise, from slightly ambiguous language contained in the contract.
A situation in which the Fed holds interest rates constant (at a low level) in order to increase the effectiveness of fiscal stimulus is known as ___________.
What is the probability that the cost will be between $300 and $400? (to 4 decimals) d.If the cost to a patient is in the lower 8% of charges for this medical service, what was the cost of this patient’s emergency room visit?
Which of the following questions from investors is best answered from the Income Statement?
How to define the relevant market to conduct the merger analysis? Explain briefly what is the Hypothetical Monopolist Test. You should discuss what the market definition is and how to include market participants of a relevant market. Explain what are..
A consumer's willingness to pay directly measures
Given the work life cycle of the "traditional" woman, it may be rational for women to invest in less human capital than men. older workers are less mobile geographically than younger worker. an economic recession tends to stimulate.
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