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There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per mile to set up.
How much would it cost to fence a single property whose area is one square mile if that property also happens to be perfectly square, with sides that are each one mile long?
How much would it cost to fence exactly four such properties, which together would contain four square miles of area?
Now, consider how much it would cost to fence in four square miles of ranch land if, instead, it comes as a single large square that is two miles long on each side.
Which is more costly-fencing in the four one-square-mile properties or the single four-square-mile property?
Identify the profit maximizing quantity for the firm (Q M), price (P M), Marginal Revenue (MR), and Marginal Cost (MC) at this profit maximizing quantity. e. Explain in plain English why a smaller quantity than Q M does not maximize profit.
In what ways do the offering MBA courses at other locations create producer and consumer borne value to both the university and the malls? What factors affect the ability of the university and malls to capture value?
Why it is important that prices are flexible in our economy? What happens if the government controlled the level of prices, how would this influence prices? How can you relate the law of demand to a recent purchase that you have had to make?
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,
What is the maximum amount of new loans that this bank can make and assume that the bank makes these loans. What will the new balance sheet look like?
Find the new equilibrium real interest rate and the corresponding levels of consumption, investment, national saving, private saving, and government saving. Find the equilibrium real interest rate r . Find the equilibrium levels of consumption, in..
As a manager what are various practical things you could do to raise utility for employees that also benefit the firm
Given the products below and the events that affect them, indicate what happens to demand or supply, and the equilibrium price and quantity in a competitive market. Identify the determinant of demand or supply that causes the shift.
Discuss how the economic indicators inflation, employment levels and interest rates,
Find out the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.
One popular voting scheme is rank order voting, where persons assign a rank (1,2,3) to the possible options; the assigned ranks are then added up and alternative with lowest sum wins.
Elucidate how the circular flow diagram also explain the interaction of households, government, and business.
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