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Supose we have two alternatives which have same output that is the same benefits. If we apply incremental B/C ratio the result gives 0. Can we assume that it is less than 1 and chose the lower cost alternative?
If someone has given you $10,000 for one year as a lump sum, or $1,000 over ten intervals, or $100 over 100 intervals (always over one year) assuming a 5% APR can income be gained "continuously"?
Explain why does the burden of sales tax fall completely on consumer when the price elasticity of demand is perfectly inelastic; the seller when perfectly elastic. and the prefect inelastic supply and perfectly elastic supply.
Suppose government increases autonomous taxes and defence expenditure by the same amount. Will real GDP increase in the short run? Why?
Many people find the current unemployment figures for Australia at 5.5% unbelievable. Why is this? Why might the official statistics be inaccurate
What is the profit maximizing output level for the typical firm? (Hint: Calculate MC for each change in output, then find the equilibrium price, and calculate MR for each change in output)
Explain why do we have such extreme diversity in pay in the US-port stars, actors, others making very high salaries while others make much less.
Widgets R Us, which is a price-taking firm, is currently producing 250 units of output. The market price is $3 per unit, the marginal cost of the 250th unit is $2.75, average total cost is $3.50 per unit, and average variable cost is $2.50 per unit.?
When a perfectly competitive firm is in long-run equilibrium, what is the relationship between the firm's marginal cost, average total cost, marginal revenue, and price?
Is it not ethical to use employee as a puppet to make money with out their consent? What are your thoughts on Adam Smith's principle of the Invisible Hand?
Suppose the cost of producing q cars is given by c(q) = 7500 + 2000qa. What is the variable cost of producing 10 cars?b. What is the marginal cost of producing the 10th car?
As an industry moves from being a monopoly to a monopolistically competitive one (due to the entry of new competitors as the monopoly's patents expire, for example), what happens to the elasticity of the demand curve facing the firm
Suppose, that instead of holding prices fixed as we did in this problem, that prices were perfectly flexible, as in a classical world. Discuss, do not show, how your graphs would be different. Also, comment on what would happen to the government m..
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