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A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50?
Clutch and Buzz are both thirty years old. Both are saving for retirement. Clutch is also saving in order to make a down payment on the purchase of a new home. Buzz plans on renting an apartment indefinitely.
Despite the tremendous economic strides made during our current era of globalization, our world is split largely between those who have benefited greatly from globalization and those who have not (many of whom have actually been hurt by it).
Your employer has just assigned you to a six-month project in Europe and you leave next week. You have just decided to list your house for sale and you have an agreement with ABC Realty to market your house. You need to appoint someone to act as ..
BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager within the Corporate Finance Division and are in dire need of a new financial analyst. You only interview students from the..
Assume the Federal Reserve Board is undertaking anexpansionary monetary policy. Explain the detailsof how the expansionary Fed impacts each of the following:
Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..
suppose that in a competitive market for electric power demanded for power is given by the equation p600-q and supply
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function
"When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." What is the implied price elasticity of demand by foreigners for a British education is (in absolute..
Considering factors such as food supplies, population growth, water availability and renewable energy, compare the marginal costs and the marginal benefits of global warming and describe what an ‘environmentally sustainable' economy would be.
Women have increased the amount of education they have achieved relative to men, and average years of schooling completed are now approximately the same for males and females. Human capital theory predicts that this would close the male-female ear..
Why is market competition important? Is there a positive or negative impact on the economy when strong competitive pressures drive firms out of business? Why or why not?
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