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Using the figure below, answer the following: a) What rate of output maximizes profits? b) What is MR at the rate of output? What is price? c) If output is increased beyond that point, what is the relationship of MC to MR? How will this affect total profits? Explain steps.
Can firm losing money go out of business in the short run? If it can’t, explain why not. On what basis does a firm decide whether or not to shut down? On what basis does it decide whether or not to go out of business? If the perfect competitor is los..
A test is conducted in eight cities to see if giving away free transit system maps will increase bus ridership. In a regression analysis, the dependent variable is the increase
Illustrate what would be the effect of poor weather on the consumer surplus, producer surplus, deadweight loss.
Elucidate the concept of the opportunity cost. your answer could consider opportunity cost in the context of the production possiblity curve.
Panther Hall is a college dorm with 100 residents who each have the identical demand function for a pleasant community room, given by the equation MB = 1000 – 9.95Q. The marginal cost of maintaining the community room is MC = 1500 + 5Q, where Q = squ..
What kind of economies come from reductions in cost due to adoption of technology that has high fixed costs, but lower variable costs?
Explain the agency relationship that exists on social media sites between the social media provider and businesses that utilize the site for advertising.
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
The people who support restricted international trade say that
Why might price collusion occur in oligopolistic companies. Evaluate the economic desirability of collusive pricing.
How do foreign exchange markets get information and how important is the information when it is in time? What are the procedures and practices of banks?
Chris is renting a house, and it does not have a refrigerator. A refrigerator is worth $3 every day because Chris will eat out less. Chris has a discount rate of 18%. Refrigerators usually last 5 years. How much is Chris willing to spend on a refrige..
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