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With the aid of fully labeled diagrams, explain how a perfectly competitive firm adjusts to earning only normal profits in the long run from a position of economic profit/loss in the short run?
The main purpose of studying a market is to be able to predict qualitatively and quantitatively changes in prices resulting from changes in demand and supply conditions. For each of the following events, assume that either the supply curve or the dem..
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -4, while group 2’s is -2. Your marginal cost of producing the product is $30. Determine your optim..
When setting profit goals, what are at least five items that should be considered in determining achievable goals?
Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved prefere..
Which of the following shifts both short-run and long-run aggregate supply left?
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
The Baseball Players’ Association has voted to go on strike if a settlement is not reached with the owners within the next month. The players’ representative, Melvin Mulehead, has two strategies (containing different free agent rules, pension formula..
A Low Rate Initial Production (LRIP) asset that will be initially used for the program`s operational test events but will also be fielded after the test events conclude:
By how much did real GDP per capita need to increase in South Korea in 2011 to achieve a growth rate consistent with its average over the previous 50 years?
Assume that labor supply and labor demand are described by the following equation -labor supply: L=5w -labor demand: L=110-0.5w where w=wage expressed in dollars per hour, and L(s) and L(d) are expressed in millions of workers. find the equilibrium w..
The company's weighted average cost of capital is 11 percent, and its pretax cost of debt is 5 percent. The corporate tax rate is 30 percent.
Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising. Calculate consumer surplus at the profit-maximizing price if the marginal cost is $264.
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