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In a leading publication your read this statement: "There are also increasing expenses for commodities, such as barley, aluminum, and glass, making it important to gain economics of scale."
Sometimes industries get so big that they create shortages of the inputs they require, that is, they drive up prices by increasing demand faster than supply increases. Explain how this affects their cost functions?
Explain what happens in other industries when the brewing industry's demand for a commodity, such as aluminum, drives up worldwide prices?
In the following list a number of well-known companies and the products that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, and oligopoly)
What is the present value of growth opportunities? or P/E ratios the price is at a point in time while the earnings occur over a period of time. It is, therefore, necessary to specify whether the earnings are for the trailing twelve month period (..
If the government imposes consumption tax on the good that raised prices by $1, by how much will the consumer's surplus change? Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your..
You have been hired as a plant manager for a firm that produces widgets (Q) in Angola, Indiana. Widget production requires machine time (K) and labor time (L).
Explain why in a monopolistic industry, if demand and cost curves are the same as those of a competitive industry, and if the demand curve has a negative slope and the supply curve has a positive slope, then monopoly output will be lower and price..
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Explain the difference between the population coefficient, i.e. ß(hat) and sample coefficient, i.e. ß. Also, please explain the difference between the OLS predicted Y (predicted dependent variable) and E(Y|X)
Illustrate what range of labor input is marginal product smaller than average product. What is happenning to average product as employment increases over this range.
Suppose that the car manufacturer allows the car dealer to return all unsold cars at the end of a recessionary year. What is the car dealer's profit in a growth year and in a recession? What is their expected profit?
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
A sharp decrease in housing prices makes people much less wealthy. If the primary effect of this decreased wealth is felt on labor supply, what happens to the level of employment and the real wage rate if the labor supply function is positively re..
Assume an employer offers a base wage of twenty dollar per hour for the 1st 40-hours of a work each week and overtime pay of thirty dollar per hour for any hours beyond forty per week,
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