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Q1. Many small boats are made of fiberglass that is derived from crude oil. Suppose that the price of oil rises.
a. Using diagrams show what happens to the cost curves of an individual boat-making firm and to the market supply curve.
b. What happens to the profits of boat makers in short run? Illustrate what happens to the number of boat makers in the long run?
Q2. Explain how the production possibility curves can be used to analyze the fundamental economic challenges of scarcity, choice and opportunity cost. Choose two products and with the aid of graphs.
Are the assumptions the same as under a simple linear regression. What does TSLS imply about the data if a strong F is found.
Use supply and demand analysis to explain price reduction of computers. What effect did price reduction have on quantity of computers demanded.
What is the relationship between a firm's total revenue, profit, and total cost and define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise.
Which of the subsequent is a Keynesian conclusion about how adjustments occur in a recessionary gap?
Elucidate how does the Demand curve faced by a monopolist differ from the Demand curve faced by a perfectly competitive firm.
Utilize the sticky-income theory of cumulative provide to explain illustrate what will take place to o/p also the price level play in this adjustment
The annual opperating cost of the new operating machine is $7,000. The company uses a 20% MARR. Calculate the annual equivalent total cost for each machine. Would you replace the old machine at this time?
If you have to make a random guess and there are four possible answers, what is the expected value of guessing?
Suppose a furniture manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers
Manuel%u2019s uses a 4-year planning horizon and a 10 percent per year MARR. Based on an internal rate of return analysis, which ERP system should Manuel purchase?
What is the short-run market supply curve? Determine the short-run equilibrium price and quantity in this industry.
Elucidate how that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale
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