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1 A firm faces the following demand and cost functions: P = 23 - 0.6q AVC = 3 + 0.4q AFC = 40q -1
(a) Calculate the output that minimizes Average Cost.
(b) Calculate the output that maximizes profits.
Let’s say the current administration decides to make a college education more affordable, so they establish a price ceiling of $50 per credit hour for community colleges, $75 per credit hour for four year institutions, and $100 per credit hour for gr..
Euro zone as a monetary union, takes the most extreme form of a fixed exchange rate. Explain the cost associate with the monetary union and why may it be a bad idea for Europe?
Calculate the arc cross-price elasticity of demand for JJT's deluxe garment bag. B. JJT's deluxe garment bag sales recovered from 4,800 units to 6,000 units following a price reduction to $130 per unit.
Suppose that an individual maximizes u(x,y)=x1^a x2^b (α, β > 0) subject to the budget constraint p1x1 + p2x2 = y. Solve for x1 and x2 (the optimal values of x1 and x2, which are the demands for x1 and x2) Are x1 and x2 , normal or inferior? Does dem..
Consider the following investment opportunity: With interest at 7%, what is the bene?t–cost ratio for this project?
This graph shows an aggregate demand curve and an aggregate supply curve for an economy with no exports or imports. Adjust the position of one or both curves to elucidate graphically the scenario described.
Briefly explain why the three variables are appropriate explanatory variables to predict the consumption of services or why they are related to consumption.
what would the largest cardholder fee that Tuan will pay. If the rental store has a constant marginal cost of $2, which strategy is more profitable?
Protecting organizational assets and information within the company has become a top priority for many organizational leaders. Review the article titled "Missed Alarms and 40 Million Stolen Credit Card Numbers: How Target Blew It", located here.
Explain why "outsourcing of jobs" from the U.S. and other higher wage societies to China and other "lower wage societies" related to the factors of long-term growth discussed in the textbook.
When the addition of one more unit of input results in a smaller increase in output then the previous unit, what type of return is occurring?
Explain in detail the important aspects and why those aspects occur for optimum currency areas: geographical factor mobility; intra- and inter-industry factor mobility; price and wage flexibility; degree of openness; and product diversification.
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