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The CEO of a major automaker overheard one of its division managers make the following statement regarding the firms's production plans: "In order to maximize profits, it is essential that we operate at the minimum point of our average total cost curve." If you were the CEO of the automaker, would you praise or chastise the manager? Explain
What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.
An essay on Market imperfection associated with negative externalities.
Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.
What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm 2 continued to charge $8?
Rover plus, a pet product store, is considering pricing a new RoverPlus labeled dog food. The company will buy the premium dog food from a company in Indiana that packs the product with a Rover Plus label.
Vera is an impoverished graduate student who as only $100 a month to spend on food-Explain why Vera's preferences are of a very special type here. How would you graph them?
Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).
Robin and Terry are Stranded on a deserted island and consume two products, coconuts and fish. In a day, Robin can catch 2 fishes or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut.
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
What is the marginal physical product of the fifth worker? What is the weekly wage of the fifth worker? What does the price of output need to be in order for the firm to profit from hiring the fifth worker?
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.
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