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The division of US businesses in the categories of proprietorships, partnerships, and corporations is based on 1) generally accepted accounting principles 2) legal considerations 3) the judgment of the American economic assoc 4) an executive order of the president
Find total revenue for quantity equal to 10,000, 20,000, and so on. Illustrate what is the marginal revenue for each 10,000 increase in the quantity sold.
A publisher is considering launching a new magazine for women in the 18–25 years age group. It is thought to be vital to the long-term success of the magazine that its sales should reach break-even point within its first year. Sketch out the key feat..
Suppose a monopoly faces an inverse demand curve of P = 6 − Q and has constant marginal cost of 2. If the government is considering legislation that would regulate price to the competitive level, what is the maximum amount the monopoly would spend on..
Briefly describe the barter system and its potential to be inefficient. What is money? How did money alleviate some of the aforementioned inefficiencies and assist in the development of markets in the acient world?
Suppose that your utility function is U = ln(3I), where I is the amount of income you make in a given year. Suppose that you typically make $30,000 per year, but there is a 5 percent chance that, in the next year, you will get sick and lose $20,000 i..
Touchie MacFeelie's production function is 0.1J1/2L3/4 where J is the number of old jokes used and L is the number of hours of cartoonist's labour. He is stuck with 900 old jokes for which he paid $6 each. If the wage rate for cartoonists is $5 per h..
Research the stock market. What is a stock? What is a share? What is an exchange? Identify the various exchanges where stocks can be traded and discuss their similarities and differences (i.e. NYSE, NASDAQ). What types of companies are traded on each..
"Because agricultural demand is inelastic, a technological advance that lowers costs will reduce total revenues. Thus, farmers have no incentive to adopt such new technology." True or false? Explain
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them?
For the following production functions: calculate marginal product of labor (L), marginal product of capital (K), and the technical rate of substitution. Identify if the production function exhibits constant, increasing, or decreasing returns to scal..
Recall the looser pay winner auction experiment done in class. Discuss how these experiments explain why the bidders changed their minds toward wanting to bid well above the value of the prize, even though they refused to do so at the beginning.
Explain how the Heckscher-Ohlin theorem is obtained, using either the “physical” definition or the “price” (or “economic”) definition of relative factor abundance.
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