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ACME manufacturing has the linear short run production function Q = 13K + 2L + 41M, where K is capital, L is labor and M is raw materials. Its stock of capital and raw materials are fixed at 5 units each; input prices were $8 for capital and $16 for raw materials, while labor is currently $5. When the company produces 300 units of output, what are its average variable costs, average fixed costs, average total costs and marginal costs at that point?
Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been open for only a year. They both want to expand. When the two owners to to the local bank looking for a loan, which one is like..
What are the advantages of the HHI over concentration ratios in measuring the degree of concentration in an industry? What is the Bertrand model? What is its relationship to the Cournot model? What is the Stackelberg model?
Management predicts that if the strike is successful the cost of worker will increase to $100 per day.
Describe the difference(s) between the following terms/phrases. Subsidiaries/affiliates vs. Associates of a MNC. Plant-level economies of scale vs. firm-level economies of scale.
The following equations represent the demand and supply functions associated with a given passenger railway route for a particular season: Demand function: V =400 – 12P Supply function: P = 1.5 - 0.03V + 0.006V2 where V is the daily passenger trips a..
Executive officers within an organization will often feel compelled and tempted to emphasize short-term results—net income for the current year—over long-term
Explain how do we measure income inequality. What problems arise the more unequal a country's income distribution becomes.
When a firm tries to maximize profit by segmenting the market into two groups and charging each group a different price, which group should be facing a lower price? Bundling is more profitable than traditional pricing ...
Elucidate what does either player have a dominant strategy. Explain is there Nash equilibrium in this game.
When a firm uses debt in its capital structure, it is referred to as a leveraged firm and this concept is referred to as financial leverage. Operating leverage refers to a firm's fixed costs of production. The higher the fixed costs, the greater the ..
In 2014, Thomas Piketty came out with a popular book, “Capital in the Twenty-First Century.” In it was a model not unlike the Solow growth model, discussing the long-run implications for the capital-to-income ratio, k/y. The traditional Solow growth ..
q1. during the late 1980s wool prices increased considerably due in part to increased demand by china and the former
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