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Suppose that the cost of production of laptop computers shows initially a brief span of decreasing marginal costs, followed by increasing marginal costs.
a. On the same graph as the total revenue curve you drew for problem #1a, draw a possible total cost curve for laptop computer production. For a given quantity Q1 (placed at any location you choose on the horizontal axis), show the corresponding profit.
b. On the same graph as the marginal revenue curve you drew for problem #1b, draw a possible marginal cost curve for laptop computer production. Indicate the profit maximizing output level.
Policy application . What would be the advantages and drawbacks of replacing the US individual income tax with a value-added tax? What if the VAT instead replaced the state retail sales tax? Who would be the gainers and losers in each case?
Does either player have a dominant strategy? Does either have a dominated strategy? Explain.
Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12. How much total profit is the firm earning ..
(Money Aggregates)What portion of U.S. Federal Reserve notes circulate outside the United States? How does this affect the United States?
Plot the Lorenz curve for income after taxes have been levied. Note that the total income will now be less than 100 and so you will have to compute the quintile shares using a new total.
Country A has soil that is suited to corn production and yields 135 bushels per acre. Country B has soil that is not suited for corn and yields only 45 bushels per acre. Country A has soil that is not suited for soybean production and yields 15 bu..
Pay scales of federal government employees are determined according to each employee's government serve (GS) rating. GS-10 experienced accountants with the Government Accounting Office (GAO) were reported to earn salaries that are approximately no..
Suppose the unemployment rate in the United States goes from 6.4% in one year to 5.6% in the next.
Enter your answer into blackboard as a percentage rounding to two decimal places. For example if your answer is 1.25 percent then you should enter "1.25".
recall partial equilibrium market model qda1b1p qs a2b2p qd qs-qd quantity demanded-qs quantity supplied-p
Assuming that the current interest rate is 3 percent, compute the value of a three year, 5 percent coupon bond with a face value of $1,000. What happens when the interest rate goes to 4 percent What happens when the interest rate goes to 2 percent
If Wachovia bank receives a $10,000 deposit, and the required reserve ratio is 0.10 (= 10%), how much can the bank loan out? Assume that Wachovia keeps zero excess reserves and only keeps the required minimum reserves.
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