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his week we examine the things businesses need to know about business costs and profit maximizing or, in a worse case, loss minimizing. In the process, we create a supply curve. Look around the stores and restaurants around you. Have you seen a lot of going out of business signs during the economic slump? GM and Chrysler filed for bankruptcy although both received bailout money. Discuss business profits that rely on fixed and variable costs and revenues. Can you give examples of the companies that have high pension costs? Why are companies using more technology input while reducing labor input? Why are the Average Cost Curves U-shaped? What is the Law of Diminishing Returns? Discuss a company's two short run options: 1. stay open or 2. shut down.
Other counters that we are running out of cheap energy. Explain which person is correct also why.
Illustrate what is the minimum product price at which the firm will operate in the short-run. Elucidate how many workers should the firm employ to maximize profits.
Suppose that U.S. citizens start saving more. What does this imply about the supply of loanable funds and the equilibrium real interest rate. Explain what would happens to the real exchange rate.
Illustrate what happens to wheat farmers and the market for wheat when university agronomists discovers a new wheta hybrid that is more productive than existing varieties? show graphically.
Assume you are part of a research team evaluating a proposal to clean up a dangerous squander site.
Find out the CPI in the subsequent year also the rate of inflation between the base year also the subsequent year.
Illustrate the way in which market forces shape the organizational responses using a range of examples.
The central bank new head decides to increase the response of interest rates to inflation. Explain how does this change in policy alter the response of the economy to a supply shock.
Compute demand of price elasticity of for natural gas sold to the US.
Dane decides to give up a job earning $100,000 every year as a corporate lawyer also converts the duplex that he owns into a UFO museum had been renting the duplex for $20,000 a year.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Which of the subsequent is always true after an economy reaches balanced growth equilibrium.
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