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Q. A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm produce to break even?
Describe the industry equilibrium price/output combination both graphically and algebraically. Calculate the level of excess supply (unemployment) if the minimum wage is set at $7 per hour.
Show the price and output that maximizes profit in this graph. Then use math to calculate the price and output that will maximize the firm's profit. Calculate your profits at this price and output level.
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
In a few weeks Professor Smith will be taking his daughter Attilla to the State Fair. Calculate the Marginal Rate of Substitution (MRS).
Compare and contrast the strengths and weaknesses of today's Federal Reserve operating procedures and monetary decision making policy.
Assume if the inflation rate is 5percent is this still acceptable. Provide quantitative justification for your answer.
Explain by how much should domestic automakers raise the price of automobiles if they wish to increase sales by 5 percent next year?
Competition seems to be so fierce among the giant retailers, after discounting and lower profit margins, how is profitability possible.
Illustrate what have been the implications for the business environment facing foreign investors of measures taken by the Indonesian government since the onset of the East Asian financial crisis in 1997.
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