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A firm’s total cost function is TC = 2q^2 + 5q +10 . The firm is a price taker and the market price for its product is $25. How many should it produce to maximize profit? How much profit?
If the Fed raised the reserve requirement, the demand for reserves would
Suppose Shiva has preferences, as indicated by the following: If he consumes more milk (M) than bread (B), then he will always be willing to give up 2 units of milk for 1 additional unit of bread to remain indifferent. With the quantity of milk (QM) ..
Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop. Using a supply and demand diagram, show wh..
her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
A domestic subsidy to enable an industry to compete against imports:
Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective supervisors are to blame for the decline in productivity? What other explanations might be possible?
Consider again an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16. Calculate the "real-world" multiplier.
Why is wage labor completely incompatible with feudalism? Is economic life distinctly separate from social and political life in America? Describe what Smith meant by the “invisible hand.” What is the mechanism by which selfish interests are made com..
In today's environment, competitive conditions are so intense that to survive in the global market, firms must exploit experience-based cost economies and location economies, they must transfer core competencies within the firm, and they must do all ..
When a firm pursues a predatory pricing strategy, it does so
Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Will these actions by Congress expand or contract the economy or are th..
Which of the following pricing strategies is NOT used in markets with special cost and demand structures?
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