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A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also asume that MC = 130 and MR is constant at all output levels and equal to 150.
a. Is this firm making profits? If so, what are these profits?
b. Is this firm maximizing profits? WHY?
c. If your answer to part b was NO, what would you recommend this firm do to maximize profits? Why?
Identifying and shaping public opinion has become a major goal of campaigns and elections. Identify and discuss the process by which people develop their political ideas. What are the four traditional agents of socialization and three additional new ..
Assume a new bank has just opened for business. It has deposits of $1,000,000 and a required reserve ratio of 15 percent. How much can this bank lend and why?
Discuss the following excerpt from a recent story in the Wall Street Journal. In your discussion demonstrate that you can use the concepts of: "price discrimination" and "barriers to entry" to explain: A) the current success of Harrah's strategy; and..
F1 & F2 are the fixed costs of Firm 1 and Firm 2. D1 & D2 are the marginal costs of each firm. What is the socially efficient quantity for monopoly? What is the NSB of the socially efficient quantity?
Under oligopolistic market conditions, a. the pricing actions of any one firm have no significant effect on the others b. the pricing actions of any one firm have a significant effect on the others c. no firm can have any control over its output pric..
Find out the optimal price-quantity if the firm is not able to price discriminate.
Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of th..
Josh and Alex work as design engineers creating high-end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please sort their various costs, listed below, into the correct ca..
Find the gradient of Q b. Find the Hessian of Q c. Denote the initial K = 10,000
The country of Alcazar has been growing at an impressive pace for the last five years. With improvements in technology, many industries have recorded remarkable growth in productivity
Suppose the production function is Cobb-Douglas, y = x 1/2 1 x 3/2 2. What is the technical rate of substitution? Does this technology demonstrate increasing, decreasing or constant returns to scale?
A $10,000 par value bond with coupons at 8%, convertible semi annually, is being sold three years and four months before the bond matures. The bond is redeemable at $C, and purchase will yield 6% convertible semi annually to the buyer. The price of t..
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