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Sometimes we use math to determine precise cost curves. Other times, we must rely on our economic intuition to determine how various situations will impact our firm's cost curves. For each of the four scenarios below, determine how each event would affect our firm's marginal, average, and average variable cost curves. Consider each situation independently.
a. An increase in employee wagesb. A decrease in material costsc. The government imposes a fixed amount of tax (i.e. it is not a percentage tax but a fixed dollar amount)d. The rent that the firm pays on their building lease decreases.
Every so often, a disgruntled college graduate sues her school on grounds that her tuition payments did not land her the good job she was expecting when she started there. Courts invariably throw out cases like hers. They are, however, willing to ..
Briefly explain the economic relationship between China and Singapore, The benefits Singapore gained from the China rapid economic growth
Explain how the Environmental Protection Agencys policies impact business in the US.
Fixed costs exist only in the short run. In the long run there are no fixed costs." Why might the time frame for the "short run" differ from one industry to the next? Provide examples of two industries with different time frames for the short run
are retail gasoline prices essentially equilibrium prices? why or why not? in most markets are prices typically at the
Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.
3.Describe the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price stability. 4.Based on the information you researched from Federal Reserve publications, present
Over the past fifteen years the Heritage Foundation and Wall Street Journal have joined forces to make an annual Index of Economic Freedom.
Find the market price and total output level. How does the monopolist allocate its production between plant 1 and plant 2
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Illustrate what sectors of the economy are likely to expand or recover in the near future. Illustrate what sectors may be the most vulnerable in the next year.
Give two examples of policies from recent history that can be considered as keynesian intervention to economy by us government. Briefly explain how the changed role that keynesian theory ascribed to government has affecte the overall performance of t..
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