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Indicate the effect that each of the following conditions will have on a firm’s average variable cost curve and average fixed cost curve. Substantiate your answer
a. The movement of a brokerage firm’s administrative office from Bangalore city to Whitefield, where the average rental cost is lower
b. The use of two shifts instead of three shifts in a manufacturing facility
c. An agreement reached with the labour union in which wage increases are tied to productivity increases
d. Elimination of lump-sum tax imposed on manufacturing firms
e. Imposition of stricter environmental protection laws.
interpret the 4 firm concentration ratio, the 8 firm concentration ratio and the Herfindahl Herschler Index for the industry The industries involved in the merger are: new Scale Inc., Intel Technologies, Pari Networks, they were merged into cisco.
Utilizing the economists model of individual choice comparing the marginal costs and marginal benefits of a choice.
Illustrtae what is the value of x which will make the manager indifferent among shirking and working hard.
Illustrate a supply or demand curve shift for the following article-The majority of grain and oilseed futures are traded on the Chicago Board of Trade (CBOT). Government estimates released on Monday, January 12, 2009 sent CBOT grain and oilseed
Elastic with respect to its own cost and whether Good Y is a substitute or a complement with respect to Good X.
What is her marginal rate of substitution when L = 100 and she is on the budget line? What is her reservation wage? What is her optimal combination of C and L?
If the income tax base were broadened by eliminating these deductions, tax rates could be lowered, while raising the same amount of tax revenue. For each of these deductions, what would you expect the likely effect on taxpayer behavior to be
How does high income inequality suppress economic growth. With respect to social conflict, credit constraint on the poor, "poor person" median voter, less developed countries have more children, etc.
Illustrate in the graph below the deadweight loss (DWL) that would result if this monopolist were allowed to operate as a profit maximizing firm without regulation.
Use both offer curves and a two by two payoff matrix, estimate the optimal foreign economic policy of a hegemon.
Elucidate when producers reduce price for good and services, it increase consumers surplus and everyone standard of living.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
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