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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. Also, discuss the differences between economies of scale and economies of scope and how firms can benefit from each. Then, provide a specific company example of economics of scale or economics of scope and how it affects production and cost or how technology affects the inputs and costs. Conduct research and use specific examples.
Your friend invests and patents a portable ice cream carrier (PCC) which you plan to manufacture as well. You determine the demand function for the product is
Why is that a profit maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? explain and justify your answers in detail.
One form of congestion avoidance is the permit system, in which a node must have a permit before it can transmit. Suppose a wide area network is using a permit system to control suggestion.
Suppose households believe that greater government borrowing today implies higher taxes to pay off the government debt in the future. What does this belief do to private saving and the supply of loanable funds today?
1. Provide two economic motives justifying government involvement in education. Explain each. 2. Provide at least one economic motive justifying government NONinvolvement in education. Explain.
What is the difference between a public good and a private good? What are the principal characteristics of each? What are the two characteristics of public goods? Why is there a free rider problem when it comes to public goods?
Formulate James Tobin's model of risk and portfolio choice, and with the use of a diagram, show how his model explains the inverse relationship between the demand for money and the rate of interest.
Examine the efficacy of U.S. welfare programs. What do such programs intend to accomplish? What are some criticisms against them? Be sure to cite specific academic examples, not just ones from your opinion.
Explain why you used either the CPI data or the GDPD data - Draw a supply/demand diagram of the US Treasury bond market to illustrate the effects on it of the developments cited in part A.
What are the effects on the French balance of payments of the following set of transactions? Les Fleurs de France, the French subsidiary of a British company, The Flowers of Britain, has just received.
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..
The Net Revenue below is dollars per year for the life of the project. P is the probability of occurrence. What is the likely Present Worth? Should they undertake the project?
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