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Widgets are sold by a constant-cost industry where each firm has fixed costs of $60 and each firm has the following marginal cost curve: Quantites (widgets): 1,2,3,4,5,6. Corresponding MC ($): 10 20 30 40 50
In long run equilibrium, what is the price of a widget? The city would like the price of widgets to change. Plan A is to give each firm a fixed subsidy each year; Plan B is to give each firm an excise subsidy (that is, a subsidy per widget). b) Which plan is more effective in the short run? c) If the city wants the long run price of a widget to be $20, what is the amount of the per-firm subsidy it must offer under Plan A? d) If the city wants the long run price of a widget to be $20, what is the amount of the per-widget excise subsidy it must offer Plan B? e) If the city wants the long run price of a widget to be $20, which plan is more expensive?
Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership is $16,000. What amount of gain must Walter recognize as a result of the current distribu..
Behavioral economics clearly makes an important contribution to our understanding of economies. Which, after all, are driven by human behavior?
Three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible PC operating system is extremely large and stable. Second, Microsoft's dominant market share is protected by high barrier to e..
If the annual benefits are $30,000, the annual disbenefits are $4000, the annual operating and maintenance costs are $6,000 and the annual worth of the initial cost is $9,850, what is the conventional benefit to cost ratio of a 50 year project?
Elucidate why general level of wages in the united states and other industrially advanced countries. What is the single most important factor underlying the long-run increase in average real-wage rates in the united states
Illustrate what does the evolution of Coke's strategy tell you about the convergence of consumer tastes and preferences.
How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?
Fassbender Widgets, Inc. has opened a new widget factory next to Lake Dunn. In the production of widgets, WWI dumps 5 thousand gallons of a pollutant, red dye #308, into the lake. The pollutant reduces the fish population and results in a loss to tho..
Suppose that Jenny is the only consumer in the antique car market. Her willingness to pay for an antique car is $200,000. Based on Jenny's willingness to pay, plot her demand schedule in the graph below using the blue points (circle symbol). Line ..
Assume the market for cough syrup is in equilibrium. Now, suppose the government imposes a price ceiling that is above the original equilibrium price. Illustrate what are the economic effects of the price ceiling?
The purpose of this section of the marketing plan is to describe how changes in the business environment will affect the eBay. This will be achieved by the use of the PEST Analysis, which attempts to review how changes in the political/legal environm..
i am looking for the modeli answers of the following attached 11 questions the questions are related to poter five
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