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A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q)=90+8q+2q2 and a marginal cost function (MC) of MC(q)=8+4q. At the given market price (P) of $18, the firm is producing 2.50 units of output. Is the firm maximizing profit? YES or NO What quantity of output should the firm produce in the long run? The firm should produce____unit(s) of output.
The manager of EverClean finds two output levels that appear to be optimal. Show what these levels of output are, and explain which one is actually optimal.
Which of the following will not cause aggregate private spending to decrease?
Explain why the waiter will provide bad service and since you are interested in good service, can you convince the waiter, in a binding/credible manner that you will tip him?
Discuss the two major contradictions of neoliberal policies implemented in Peru in the 1990's. (Hint: Sheahan discussed the following contradictions: that the policies led to an immediate increase in recession, poverty, and unemployment and that the ..
What is the equilibrium price and quantity of bonds in this market? What is the interest rate in this market, given your answers above?
A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the statio..
Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of the two rival firms in the same market will increase market power.
Consider a dairy that manufactures milk and a ice cream chain that turns that milk into ice cream. Explain how each of these parties could enter into a futures contract to hedge their risk of fluctuating milk prices.
rajs utility bundles of x and y is given by uxyxya. fill in the table with rajs utility for the corresponding bundlesx1
assume an economy with an ae curve with a slope of 1 where a one percent change in real interest rates changes real gdp
1. the demand for steel ingots is given by the following p150-0.5q. the private marginal cost of steel producers is
A machine costing $2,082 to buy and $300 per year to operate will save labour expenses of $650 per year for eight years. If the interest rate is 10 percent, what is the minimum salvage value (after eight years) at which the machine is worth purchasin..
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