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Consider the cost function c(y) = 4y^2 + 16.
1) Write down expressions for the average cost function, marginal costfunction, and average variable cost.
2)What is the level of output that yields the minimum average cost of production?
3) At what level of output does average variable cost equals marginal cost?
British Prime Minister Lady Thatcher planned a poll tax that levied an equal amount of tax on every citizen regardless of his or her income.
What is the net present value of this proposed project? If efficiency was the only objective for making the decision and we have fully accounted for all costs and benefits would you recommend the project go ahead or not?
as an employee of the world bank you have been asked to research 1 economic concern in a south american country and
Describe briefly why time lags in discresionary fiscal policy can adversely affect the efforts.
Suppose that last year the equilibrium price and the quantity of good X were $20 and $10 million pounds. Because of strong demand this year equilibrium price and quantity of good X are $30 and 15 million pounds. Assuming that the supply curve of g..
Explain the effect these vending machines have on the speed of market adjustment. Have you ever wanted to buy a soft-drink on a very hot day, only to find that the vending machines are sold out. How would widespread use of such vending machines af..
All of the firms will submit sealed bids. The procurement officer will look at all of the bids and select the lowest bid but pay to the lowest bidder a price equal to the price bid by the second lowest bidder. Show that bidding c is a weakly domin..
In other situations it would be reasonable for a purely competitive wheat farmer to raise his price per bushel because he could reduce his variable costs by selling less at a higher price. True or false, and why?
The current required reserve ratio = 10%. Assume there exists a total of 4 banks. They have the following balance sheet items at the end of a business day, where all remaining assets are kept as reserves at the Fed
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's?
Suppose two high tech companies, X and Y, are the only producers of a new product that is used my numerous computer manufacturers.
A competitive firm can sell all of its output for the market price of $5. its short run cost function is TC= 1000 + Q + 0.005Q2. this cost function has marginal cost given by MC= 1 + 0.01Q.
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