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A monopolistically competitive firm produces 100 units of output per period, selling each unit for $75. Marginal revenue and marginal cost of the one-hundredth unit are each $50. Average total cost is $60.
a) Does this situation correspond to short-run equilibrium? Why or why not?
b) Does this situation correspond to long-run equilibrium? Why or why not? Draw a graph to support your answer.
Elucidate proportion of the variation in sales is explained by the independent variables in the equations
Compute the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase.
Explain the difference between accounting and economic profits.
Why would the government implement a stimulus program into the economy
Explain the difference between the population coefficient, i.e. ß(hat) and sample coefficient, i.e. ß. Also, please explain the difference between the OLS predicted Y (predicted dependent variable) and E(Y|X)
One of the biggest risk factors for multi-nationals enterprise (MNEs) is using the potential volatility of exchange rates. Explain mechanisms that can be used to alleviate the risk, including discussion of ways in which an MNE might increase profi..
What is the answer for "Why is government justified in regulating a natural monopoly?"
On her employment application, Rhonda disclosed that she had been convicted of 2 misdemeanor larceny. Those convictions made it unlawful for her to become an employee of Midwest without FDIC approval. Midwest proceeded with its working relationshi..
A country which does not tax cigarettes is considering the introduction of a $0.40 per pack tax. The economic advisors to the country estimate the supply and demand curves for cigarettes as:
Elucidate why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
A mathematically fair bet is one in which amount won will on average equal the amount bet,for example, when a gambler bets say, $100 for a 10% chance to win $1000
There are 100 firms in the market. Market demand is Qd = 500-Pmkt What are the shut-down and break-even points for the firm?
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