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A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but are operating below their minimum efficient scale. Explain the long-run adjustments that will create equilibrium with firms operating at their minimum efficient scale. Why is a perfect competitive firm associated with efficiency for both consumers and businesses? Respond to at least two of your fellow students' postings.
How many cases of peaches will be produced per week during the growing season, and what will the selling price per case be if producers ignore the marginal external costs imposed on others?
How will the programs proposed affect future growth possibilities for the economy (how will they effect the PPF and long run aggregate supply)?
Discuss should the government minimize unemployment rate? What will happen if the unemployment rate is too low?
The TiVo video recorder, the iPod music player and the Xbox game machine all owe their existence to the same high-tech innovation: smaller, denser, cheaper disk drives.
Suppose that a business has developed a very high-quality product and operates more efficiently in producing that product than any other potential competitor.
Production quota: In many cities, the amount of licenses to operate taxis is limited. For the purposes of this problem, we can think this is a production limit (a maximum production level) of taxi rides set by government. Assume that this limit is lo..
Write an essay of about 3,000 words using the approaches developed in the module to appraise the fiscal strategy of the Conservative-Liberal Democrat coalition government.
Consider a good being sold in both city A and city B. The correlation coefficient between the price of the good in city A and city B (using weekly data over the period 2007 to the present) is 0.92. We may conclude that city A and city B are in the..
Suppose the supply of dollars increase by 600 billion at each exchange rate. Explain if the increase in demand results from a large purchase b the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese..
Given the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's..
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
In what ways is the inflation tax a tax, and in what ways is it not a tax and who pays for the inflation tax?
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