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Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output. How is this possible?
A monopolist's demand function is P = 1624 - 4Q, and its total cost function is TC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is output produced and sold. G) The monopolist should shut down when price is equal to or lower than?
Identify the sales promotion tools that might be useful for some of the following (a) Tastee Yogurt, a new brand introduction, (b) 3M self-sticking Post-it notes, and (c) Wrigley's Spearmint Gum.
If demand of a commodity increases with income,
There are increasing returns to size whenever increasing the output of the business results in: At the output level where MC is just equal to ATC:
Assume that the senior managers of FedEx Express and FedEx Ground each have an investment opportunity that would require $20 million of additional operating assets and that would increase operating income by $4 million. If FedEx evaluates all of i..
In jury selection, one cannot exclude potential jurors on the basis of race or other discriminatory criteria. One question is if this prohibition against discrimination should extend to potential jurors that have physical or mental disabilities. How ..
The interest paid on internally held debt: Answer is a real claim on our goods and services. is roughly 20% of the federal budget. is paid out to one group of Americans from the taxes collected from another group of Americans. is a real burden on the..
A profitable company making earthmoving equipment is considering an investment of $150,000 on equipment that will have a 5 year useful life and a $50,000 salvage value. Use a spreadsheet function to compute the MACRS depreciation schedule.
An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:
Assume that you are going to start a small business of your own. Describe the business and, utilizing the concepts of this unit and the earlier units, discuss: What costs you would incur;
Which of the following market conditions in an oligopoly increase the probability that it will be able to maintain prices well above the competitive market level? Explain your answer briefly in each case.
Goods and services sold in black markets, such as illegal0 drugs, are generally not included in GDP. Does this lead to misleading comparison between countries? Should these activities be included as a positive or negative in GDP?
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