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Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average total cost is $7.50, and the marginal cost is $10.00. What would you expect the firm to do in the short run? The market in the long run?
What is the optimal system of intellectual property rights to encourage innovation? Empirical evidence from economic history can help to inform important policy questions that have been difficult to answer with modern data: For example, does the exis..
explain how governments can contribute, or discourage long run growth through their policies and institutions.
Over the past 5 days, the common stock of Tyler Mfg. had daily returns of 0.2, -0.1, -0.2, 0.3, and 0.1 percent, respectively. For the same 5 days, the market had daily returns of 0.0, 0.1, -0.3, 0.4, and 0.2 percent, respectively. What is the cumula..
he company will use the truck for eight years and will depreciate it over this period time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five
Then make an argument for why the government may still prefer using the other approach.
A large importing country utilizes a binding import quota to support its domestic price. Suppose this country experiences a 25% depreciation of its currency relative to all other countries. Construct a scenario to show how this currency depreciation ..
"Price" in the statement of the Law of Supply refers to: A decrease in demand and an increase in supply will: When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
Illustrate what does it imply about actual price level relative to expected price level. Illustrate what must happen to real and nominal wages in order to close a contractionary gap.
In the long run, there will be no unexploited scale economies (excess capacity) in
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Where one the theoretical Production Possibility Frontier (PPF) do you think the US was on September 10, 2001? What happened thereafter? Support your answer with evidence such as unemployment rates, labor participation rates and information on invest..
Your group of rural cabin owners is considering a small renewable energy project that would average 100 kW of output year-round, with an expected lifetime of 20 years. The project has a capital cost of $280,000, and a salvage value of $30,000. The co..
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