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Assignment: Maximizing Profits and Minimizing Losses
Consider a supplier of agricultural equipment who is deciding how much of two products should be produced by his firm. You determine what the two products are.
Now create a report that includes a discussion and analysis regarding how such a supplier makes such a determination in order to maximize the firm's profits. Include in your response:
o A discussion of exactly what costs are associated with profit maximization.o A discussion of the concept of "opportunity cost."o A discussion of the alternative production opportunities.o A discussion of the various constraints which firms face in maximizing their economic profit.
In 2008 the Fed initiated a program called QE or quantitative easing to try and stimulate the economy. Using a fully labeled aggregate demand and supply graph, show what the objective of this program was. Explain what the new equilibrium point mea..
Take a small company to be established and construct a cost revenue analysis to see how feasible the project could be? Divide your cost of production into fixed and variable cost. Calculate the price that you think will make the business break eve..
Compare the firms' profits under quantity competition and price competition (Problem 9). Provide an intuitive explanation for why price competition is more intense (i.e., leads to lower equilibrium profits).
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1. a monopolist is aa-price taker.b-price setter.c-cost maximizer.d-quantity taker.2. in perfectly competitive markets
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