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Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR=MC rule when an industry is purely competitive
Statistics show China has a huge savings rate and huge trade surpluses. In contrast, the U.S. has very small savings rates and very large trade deficits. What national income accounting can explain this? Discuss and reference equations and/or the cir..
The difference between a decreasing costs industry, a constant cost industry, and an increasing cost industry: Without relying on any algebra or geometry, differentiate the three types of industries. Give an example of an industry of each type and ex..
what is the output level does the marginal cost curve cross the average cost curve. Compute her accounting and economic profits.
With respect to three goods- ice cream, green tea, and digital cameras, what does it mean when your preference for, and satisfaction gained from, these three goods are consistent with the assumptions of completeness, transitivity, and (What I call) t..
Suppose a second firm enters the market. let Q1 be the output of the first firm and Q2 be the output of the second. What is the profits of each firm as functions of Q1 and Q2.
Identify opportunity cost of increase divestment. What will happen to future production possibilities if investment increases.
Elucidate why are shortages or surpluses more likely with preset costs, such as those on tickets, than flexible costs
Using the method of Lagrange multipliers to derive Sharifah's demand for brownies and espressos. Explain how many brownies and espressos will Sharifah consume.
Assume a central bank does not satisfy the Taylor principle. Use a graph to analyze the impact of a supply shock.
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations.
Indigenous Australians have the worst health of social groups in Australia. Describe two social determinants that contribute to a lower life expectancy for Indigenous Australians. Identify one condition that Indigenous Australians have a higher preva..
Twenty years ago you took out a $200,000 loan. The details of the loan called for uniform payments to occur every month for thirty years. Interest rates have dropped significantly, and you have decided to refinance the loan. If the original loan inte..
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