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A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist do to maximize profits? b.) Why might a business owner keep their business open but let it deteriorate, rather than shut it down? Will this profitability last?
What is the impact of a tax cut in an economy operating under a fixed exchange rate regime on household spending, interest rates.
You promise to cut tax rates, increase transfers and government purchases, reduce the governments budget deficit and reduce the governments debt as a fraction of the gdp. If elected, is it possible for you to keep all of your campaign promises.
Explain how much does the total amount of deposits in the banking system increase? By how much does the money supply increase.
Find the number of units of input L that maximizes the average product function. Determine the boundaries for the three stages of production.
A survey of economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following.
Market for this commodity is characterized by perfect competition. Government steps in and levies a unit tax of 10 on this commodity. Illustrate what is revenue raised by government through this tax.
How many units of good X will be purchased when Px=4910, determine the inverse demand function for good x.
A major industrial firm decides to spend $2,000,000 to purchase new machines for a factory. If the marginal propensity to consume is 0.8, the eventual change in GDP will be?
Express Illustrate what will happen also why to the firm's average fixed costs, marginal costs, average costs also profits as the firm makes its choices.
Workers make the supply decisions in labor markets, but firms (represented by hiring managers) make the demand decisions. Will firms want to hire more workers or fewer workers when the wage rate rises? What are some techniques employers can use to ..
Would Boeing's margin likely rise or fall if the yen then depreciated and competitor prices were unchanged? Why?
Describe why it is often asserted that exporters suffer when their home currencies appreciate in the real terms against foreign currencies and prosper when their home currencies depreciate in real terms.
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