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Bob Edwards owns a pastry shop. Bob hires an economist who assesses the shape of the pastry shop's average total cost (ATC) curve as a function of the number of bagels produced. The results indicate a U-shaped average total cost curve. Bob's economist explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product, which causes it to rise. What would be the second reason? Assume that the marginal cost curve is linear. (Hint: The second reason relates to average fixed cost)
Identify the nature of resource cost structure and the practical significance of different costs and explain the factors influencing optimum size and the significance of demand and supply relationships;
Draw a figure of the world labor market comparing the Home and Foreign wages (like the one we did in class).
How have TV viewership and shopping habits changed? Is internet streaming the future? Explain.
Jane obtains utility W1/2 from wealth W. Jane has $100, but there is a 25% chance she will require surgery which costs $64. Sketch this utility function, indicating the values of Jane’s wealth if she does and if she does not need surgery. calculate t..
Ariana withdrew $400,000 out of her personal savings account and used it to start her new internet cafe. the savings account pays 2 percent interest per year. What was Ariana's accounting profit for the year? What was Ariana's economic profit for the..
John, an experienced and slick bank robber recruited Evelyn to rob a bank. Plans were set for them to acquire exactly $10 million from the bank vault. The odds of them dying in this heist is 1 in 10. Assuming that Evelyn was promised a share of 1/4 o..
How large of a sample is needed to estimate the true proportion of children with good diets within 2% with 95% confidence.
Suppose that France and Germany both produce oil and cheese. France's opportunity cost of producing a pound of cheese is 5 barrels of oil while Germany's opportunity cost of producing a pound of cheese is 11 barrels of oil. France can gain from speci..
A) Find the long run total cost curve if A = 1. B) What happens to the total costs if A = 2 instead? Explain.
The purchase of the car that Joe dreams about can be accomplished by making payments of $300 a month for six years, if the first payment is made on February 1,1995, and the last payment is made on January 1,2001. Will Joe have saved up enough money t..
Manufacturer A is starting to make Gismos at an initial production cost of $95 for the first unit and has been lowering the cost with a learning rate of 79 percent. Manufacturer B also started this year with an initial production cost of $288/unit wi..
Find the case entitled In Re Samuels & Co., Inc., 526 F.2d 1238 (5th Cir. Tex. 1976). This case is in Week 5. After you have read Part 7 in the textbook (in a paragraph) discuss this case and why it comes under Section 9 of the UCC.
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