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a) True or False. If the price is less than ATC, a firm will minimize its losses by shutting down. Explain fully.
b) Explain why both marginal and average costs are believed to eventually increase in the short run.
c) With reference to (b), is this also true in long run?
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
Suppose you bought a bag of groceries at Food Lion this past September for $46.54. Calculate the price of a similar bag of groceries in 1999 prices if the CPI
Draw a diagram describing autarky and a pattern of comparative advantage for your example.
What are the macro and micro problems? What systems are affected structural, psychosocial, technical, managerial, goals?
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
What is the amount of loans from rest of the world? What is the current account balance? What is capital account balance?
Write down the effect on the real wage and hours worked in the short run.
The demand and supply curves for gasoline (in billions per year) are given below. Using the equations, find the initial equilibrium price and the quantity in the market for gasoline.
You are the manager of a firm that manufacturers front and rear windshields for the automobile industry. Due to economies of scale in the industry
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
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