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A reduction in a monopolist’s fixed costs would:
a. possibly increase, decrease or not affect profit-maximizing price and quantity, depending on the elasticity of demand.
b. decrease the profit-maximizing price and increase the profit-maximizing quantity produced.
c. increase the profit-maximizing price and decrease the profit-maximizing quantity produced.
d. not affect the profit-maximizing price or quantity.
how much of the differences in output per worker between Spain and India can be explained by differences in total factor productivity and how much can be explained by differences in capital per worker.
Using the diagram below explain the output, employment, wage, and income distributional consequences of an increase in migration of labour = L1US - L2US from Mexico to the USA.
Consider a household seeking to allocate disposable income over two periods: current period and a future period. How does the equilibrium r vary with an exogenous increase in y'? Is this intuitive? you should be able to make an argument as to whether..
Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? What..
An airline is considering the purchase of an Airbus A-320neo which offers improved fuel efficiency over the previous generation of narrow-body aircraft. The finance department estimates the aircraft will generate a positive net cash flow of $6 millio..
Suppose that in the hypothetical country of Sore, coffee mugs are distributed based on government policy. This distribution rule gives the residents of Caffistan an incentive to spend time. People in the U.S. state of Iowa eat both corn and potatoes...
If a reform of the tax laws discourages saving by taxing interest income, according to the Loanable Funds model we would expect
Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said: "It's an oligopoly. When one (firm) changes price, they a..
Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The tax rate is 30..
In 2011, Britney taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2012, she quit teaching, stopped renting out her basement, and began to use it as the office for her new website design business. Duri..
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).
Mercantilism is a bankrupt theory that has no place in the modern world. Discuss. Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as "unfair" impor..
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