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4. For many corporations such as utility companies, a major portion of the cost of production is fixed in the short run. Should these very large fixed costs be ignored when the executives are making output and pricing decisions? Why?
analyze the past current and future cost considerations of the company and on the basis of your costs analysis create a
Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals
A bank currently has $70,000 in deposits, $6,000 in cash in the vault, $12,000 on deposit with the Fed, and $7,000 in government securities. The needed reserve ratio is 20 percent. Answer these questions: What could keep the expansions from happening..
A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm should decide how to organize its assembly operation. Skilled workers, at $33 per hour each, can individually assemble the test equipment..
If the current income level in a market driven economy is above equilibrium, macroeconomic theory suggests that an automatic adjustment will take place
How much should this firm produce now, and what price should they charge? Explain, calculating total profit or loss earned at this quantity.
the table gives the demand and supply schedules for sandwiches.pricedollars per sandwichquantity demandedsandwiches
Py =4 and Uo is the maximal level utility when Px =5, Py =4 and I =100. find the the compensated demand curve (or of Hicks) and draw it on the same graph. for what value of Px the two curves will cut? what is the elasticity of compensated demand w..
What is the dollar value of the deadweight loss when output level Q3 is produced? What is the dollar value of the total surplus when output level Q3 is produced?
Many demographers predict that the United States will have zero population in the 21st century in contrast to average population growth of about 1 percent per year in the 20th century. Use the Solow model to forecast the effect.
evaluate each of the following proposals to address global warming. consider for each the equity issues whether the
Current economic theory and their application or lack of application to contemporary economic problems
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