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Suppose that a business owns the land on which it factory sits and thus pays no one rent. The rental market value of the land is $200,000 per year. It pays $800,000 per year for labor and inputs and also pays $200,000 per year for insurance. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were:
A. $200,000 and its economic profits were $400,000. B. zero and its economic loss was $200,000. C. $0 and its economic profits were $200,000. D. $200,000 and its economic profits were zero.
George Kennan’s Long Telegram/Mr. X article. What is the post-war Soviet outlook? What are the sources of this outlook? What are the practical policies that emerge out of this outlook? What should the US do in light of Soviet policy/outlook?
What is the difference between demand for insurance and demand for medical care?
Some companies establish prices for their products by marking up their full manufacturing cost
Show graphically and explain how long-lags in the effectiveness of monetary policy have the potential to lead to acceleration in the inflation rate. (Assume that the economy is in a recession when the Fed enacts the monetary policy change.)
Consider a monopolist in a market with linear inverse demand p(q) = 4 minus q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price.
The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2001 as the base year.
A firm starts production of a new product, and forecasts production and sales during the time periods (t1,t2,t3)=(1,2,3). The demand during time period t is estimated to be equal to t(4-t)/p^2 where p is a price of a product the firm will have to cho..
3 suppose the real side of an economy is characterized bynbspy 80k12 l12 k100 and l 100nbspg 3000 t 3000nbspi 2000
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
q1. the standard of living for the poorest third of the world is falling behind the standard for the rest of the world
Evaluate how business environment is influenced by government economic policy which may be identified through your application of economic theory - Critically evaluate measures used by governments and central banks to manage the economies of their ..
3. assume a monopolist who sells a product with a total cost function c -100q 15q2. the market demand is given by the
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