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A firm has three different production facilities, all of which produce the same product. While reviewing the firm’s cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing that plant. Another manager, Joshua, notes that the high-cost plant has high fixed costs but that the marginal cost in that plant is lower than in the other plants. He says that the high-cost plant should not be shut down but should expand its operations. Who is right?
Suppose we have the following information about the productivity of two industries in USA and Mexico. The unit labor requirements are given in the following table. Plot production possibilities frontier (PPF) for each country assuming that each count..
Researchers have found a hybrid of corn that is cheaper to grow. This technological breakthrough
Examine whether each of the following statements is true or false. Explain. a. [15 points] If MC is less than ATC then AVC falls as output rises. b. If MC exceeds AVC then ATC rises as output rises. [Notations/Abbreviations : MC = marginal cost; AVC ..
Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.70 each. Either design will serve equally well and will involve the same material and manufacturing cost except for the lathe and drill op..
There are extremely high incidences of speeding in Bathlaham. The fine for speeding is currently $200, and it is estimated that the current probability of a speeding driver being caught and convicted is 5%. Provide an explanation for why speeding is ..
Fully explain your answer in a way that shows your understanding of monopolies. Your paper should be two to three double-spaced pages and formatted according to APA style as outlined in the Ashford Writing Center.
Identify ethical perspectives in the global organization.
Elucidate how much labor should the firm employ. What is the resulting output and profit.
Analyze the effect of each of the following events on the market for loanable funds in a closed economy in long run equilibrium. In each case, identify the effect on national saving and its components, the level of investment, and the real interest r..
how would you describe balance between costs of automation, or fixed costs and costs of labour, or variable costs. How has Internet changed balance between automation and labou.
Goods and services sold in black markets, such as illegal0 drugs, are generally not included in GDP. Does this lead to misleading comparison between countries? Should these activities be included as a positive or negative in GDP?
What is the SAP (structural adjustment program)? What are the IMF-imposed “conditionalities”? Why did the IMF and World Bank imposed them upon Third World countries during both their debt crises and financial crises?
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