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In order to maximize profits A.the derivative of total revenue with respect to quantity must be less than the derivative of total cost with respect to quantity. B.the derivative of total revenue with respect to quantity must be greater than the derivative of total cost with respect to quantity. C.the derivative of total revenue with respect to quantity must equal the derivative of total cost with respect to quantity. D.NONE
The war in Iraq comes to an end. Iran and Afghanistan lay pipes to generatemore oil. The United States and Venezuela enter into an era of friendship. Which of the following correctly captures the effect of this change on the market forgasoline?
Does one who kills another "deserve" to die? Why or why not? Are there circumstances that would change your answer? Make two lists (perhaps using a table with two columns). Calculations of the likely consequences of assigning that particular penalty ..
Suppose the market for lemonade is a competitive market. The prevailing market price is $10. A typical seller in the market has a cost function of: C = q3 - 6q2 + l0q + 100. Find its profit-maximizing output level. Calculate her profit. What is the l..
Draw supply and demand for product showing the equilibrium price and quantity. illustrate what would happen if all the transactions costs of market were reduced. generally, what is the impact of transactions costs on the operation of the marketplace?..
How does Costco differ from other retailers? What is their business model? Who is the Costco target customer? Why? Why are the stores laid out the way they are? How is this different from other retailers? Why does Costco keep the price of its hot dog..
Consider the allocation of a delectable resource over two periods. There are Qbar=4 units of the stock available. The total benefits derived from using the resource are defined as TBt= 20qt- (1/2qt^2) and the total cost of extracting the resource is ..
Call Us demand function is Q = 70 – 0.25P; MC = 16Q and total fixed cost (TFC) is 22% of total revenue (TR) at the revenue maximizing level. (i) Derive the AFC (average fixed cost) at the profit maximizing level. (ii) What is the profit at the profit..
Suppose the market for wheat is perfectly competitive. Fed up with low prices, a wheat grower in Texas decides he won't take his output to market and, instead, dumps all his wheat into the Red River. What happens to the market price of wheat?
If the market demand curve is Q = 100-p, what is the market price elasticity of demand? If the supply curve of individual firm is q = p and there are 50 identical firms in the market, draw the residual demand facing any one firm. What is the residual..
Achieving lower pollution Suppose the government decides to raise the gasoline tax as a way to reduce air pollution and traffic congestion to their optimal levels. Which of the following describes why corrective taxes, such as the gasoline tax, are u..
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 demand schedule in the graph below utilizing the blue points.
q.your firm is considering the purchase of an old office building with an estimated remaining service life of 25 years.
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