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In a perfectly competitive market, industry demand is given by Q =1,000 - 20P. The typical firm's average cost is AC = 300/Q + Q/3.
Confirm that Q min= 30. ( Hint:Set AC equal to MC.) What is AC min?
Suppose 10 firms serve the market. Find the individual firm's supply curve. Find the market supply curve. Set market supply equal to market demand to determine the competitive price and output. What is the typical firm's profit?
Determine the long-run, zero-profit equilibrium. How many firms will serve the market?
What are the main limitations of unit root test as a test for stationarity?
Assume an economy with a coal producer, a steel producer, and some concumers (no gov.) in a given year, the coal producter produces 15M tons of coal and sells it for $5 a ton. the coal producer pay $50M in wages to consumers
What happens if Box-Jenkins techniques are applied to time series that are no nstationary? What are the differences between Box-Jenkins and VAR approaches to economic forecasting? In what sense is VAR atheoretic?
What is the unbiased estimate of the difference in height between boys and girls? Provide a formula and check the unbiasedness. Calculate the value of this estimate for the given sample
What is the effect on the money supply?
Danny "Dimes" Donahue is a neighborhood's 9-year old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.50 each, he sells 100. At a price of $1.00 each, he sells 300.
Two firms currently produce the goods q1and q2separately. Their cost functions are C(q1) = 25 + q1, and C(q2) = 35 + 2q2. By merging, they can produce the two goods jointly with costs described by the cost function C(q1, q2) = 45 + q1+ q2.
List and describe the variables , other than price, thet cause a shift in the supply curve
You estimate the operating expenses, including taxes, will be $45,000 for the first year and that they will increase by $3000 each year thereafter. You also estimate that razing the building and selling the lot on which stands will realize a net a..
If the government taxes Internet service $15 a month, does the buyer or the seller pay more of the tax? What is the tax revenue? What is the excess burden of the tax? Is the tax proportional, progressive, or regressive?
If the network has no hidden layer, show that the model is equivalent to the multinomial logistic model described in Chapter 4.
Distinguish between an exact replication and a conceptual replication.
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