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Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal $1,250. Based on this information, should this firm continue to operate in the short run? Please explain why your answer is yes or no.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Explain how each of the following would affect the equilibrium real wage, and equilibrium level of employment. a. A relaxation of immigration laws which leads to a large increase in the number of immigrants entering the country.
what is the typical pattern of saving for an individual over his or her lifetime what impact does this behavior have on an individual's lifetime consumption pattern what impact does the behavior have on the saving rate in the overall economy
Describe the total cash flows in real terms and the depreciation tax shield. What is it that has you concerned.
Determine which of the following is not a major component of the Federal Reserve System? Kudrow stock just paid a dividend of $4.76 a share and plans to pay a dividend of $5 a share next year, which is expected to increase three 3% per year subsequen..
Calculate the Consumer Price Index in each year and calculate the inflation rate from 2010 to 2011 and then from 2010 to 2013 using the calculated CPIs.
You borrowed $5,000 at 6%, compounded annually. The loan was repaid according to the following schedule. What was the payment in the 3rd and 5th year?
Because the structure of the personal income tax is progressive, a larger share of income is taxed at higher rates as real income increases. Therefore, economic growth automatically results in higher taxes unless offsetting legislative action is d..
If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?
Assume the situations faced by the subsiquent individuals. Who gains and who loses.
International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis?
Suppose that the production function were . Assume that A = 100,000, and that the current level of the capital stock is 10,000.
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