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A firm employs 8 units of the variable resource. at this level of employment, average product is 2, and average variable cost is $4. how much output is the frim producing?
Do economic events affect presidential elections. to test this so -called political business cycle theory. Elucidate what is the expected sign of X.
Illustrate would be the effect on D' of decreasing the variable cost per unit by 25% if the fixed costs thereby increased by 10%.
Discuss a scenario where either the supply or price of a good or service is intentionally limited by the government.
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Illustrate what effect will this have on its optimal price.
There is a potential entrant, who needs to pay a sunk cost of f to enter in this market. Firms may produce any quantity that does not exceed its capacity.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
explain why a rise in the price of gasoline is likely to have more of an effect on consumers than a rise in the price of strawberry milk shakes.
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
elucidate the social gain from the market for cars. Be sure to show gains and losses to all relevant groups of Americans.
You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q 100,000 -1.25P, illustrate what price should you charge in order to maximize revenues from sales of the Highlander.
compute the cost of the company's retained earnings. if the floatation cost per share of new stock is $4, calculate the cost of issuing new common stock.
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