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Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 units of output are produced, and that the wage rate is $12. If labor is the only variable input, what is the average total cost of producing 10 units of output?
Suppose the market for cantaloupes is unregulated. That is, cantaloupe prices are free to adjust based on the forces of supply and demand. If a shortage exists in the cantaloupe market, then the current price must be (higher or lower)?
How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? How will GDP be affected? Explain the causal chain. Explain how interest rates and bond prices are related to one another. Why is this important for ..
Demand is linear: p= A-by; cost is cy (marginal cost is c). What is oligopoly price and quantity when there are players? What happens to the total market supply as n goes to infinity?
In monopolistic competitive industry the products that make up that industry are virtually alike. Only a few minor differences separate one product from the other (take soap for example). In such a case one is lead to believe that consumers could cho..
Does either player have a dominant strategy? Explain why or why not? Is there a dominant solution for this game? c) Identify the Nash equilibrium of this game. Explain.
If there is a new breakthrough in manufacturing technology that reduces the cost of producing DVD players by half, what will happen the following Four parts of supply and demand: (1) supply of DVD players, (2) demand for DVD players, (3) price and sa..
Based on the article Nearshoring in Latin America, what are the short- and long-term implications of nearshoring given the current economic conditions?
Consider a firm that uses two inputs: skilled workers and computers. Explain what it means if skilled workers and computers are complements in production. Specifically, if the price of computers falls, and skilled workers and computers are complement..
The Keynesians claim interest rates guarantee that savings will equal intended investment. The Keynesians claim that wages and prices are “downward sticky”. In the Keynesian model the velocity of money moves against GDP. Determine the socially effici..
Utilizing productive efficiency as guide, which nation should produce Chevrolets and which should produce Toyotas.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
HI5003 Economics for Business. Australian Budget in May for 2014. Discuss the various aspects of expenditure and revenue in the budget. Comment on various stakeholders' reaction to this budget like Businesses, Consumers, Employees, Social welfare..
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