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A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit.The firm's total costs are C ( Q) = 40 + 8Q +2Q2.
a.How much output should the firmproduce in the short run?
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrast the economic fluctuation the United States has experiences from 1990 to current date. Provide ..
A potential entrepreneur is trying to make a decision whether to open a new spa. She presently makes $35,000 per year as an aerobics instructor
After 25 years, the level of GDP in the second country is more than 25% larger than that of the first country. Why? And what does this show of the importance of small differences in the rate of growth?
Normally the selling price of a product, p, is related to the demand according to the following relationship: p = a - bD. However, a company has found that the price (in dollars) of its product can be related to demand, D
What does her utility function say about her MRS of Coke for Pepsi?
Would the purchase of bonds by the Bank of Canada in 1.a) increase or decrease the potential for money creation? Explain in less than 5 lines.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
A manager of a monopoly firm notices that the firm is producing output at a rate at which average total cost is falling but is not at its minimum feasible point. The manager argues that surely the firm must not be maximizing its economic profits.
What is the effect on investment? What is the multiplier effect?
Do the utility maximizing amounts of X1 and X2 change if P1 increases to 5 while P2 stays constant at 5? Why or why not? Do the utility maximizing amounts of x1 and x2 change if P2 increases to 9 while P1 stays constant at 4? Why or why not? For a ..
The New England Soap Company is considering adding some processing equipment to the plant to aid in the removal of impurities from some raw materials. By adding the processing equipment, the firm can purchase lower-grade raw material at reduced cost ..
Discuss the impact of foreign economic aid from rich countries to LDCs and should developing nations continue to seek such aid?
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