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Q1. The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in a competitive industry. Currently, the company is producing 40 units / period. Elucidate the optimal short-run output? Calculate the profits that Ohio Bag is losing through suboptimal output.
Q2. Suppose that the United States cracks down on illegal immigrants and returns millions of workers to their home countries.
a. Explain what will happen to U.S. potential GDP, employment, and real wage rate.
b. Explain what will happen in the countries to which the immigrants return to potential GDP, employment, and the real wage rate.
If interest rates remain unchanged, what is the expected capital gains yield, stated as a percentage, over the next year for Bond A and for Bond B.
Explain how it will affect the number of employees you schedule. All other things being equal, what will happen to prices of the Galaxy and the iPhone.
Determine the cost to the government of buying firms unsold units
Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace.
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market.
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
Find the output you should produce in order to maximize your expected profits so that you can then determine your expected profits accurately.
How large is the bias in the CPI due to not immediately incorporating new goods.
Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.
Given a binomial random variable with n = 60 and p = 0.36 find the probability of obtaining between 25 and 35 successes inclusive, to three decimal places.
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