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A company finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage rates. In the long-run, however, the firm can install more machines and operate them for various periods of time. Which do you think will be lower, the short-run or long-run average cost of the increased output? How is your answer affected by the fact that the long-run average cost included the cost of the new machines the firm buys, while the short-run average cost includes no machine purchases? Explain your answer.
Assume the graph below represents the market demand for a patented prescription drug together with the marginal cost and average cost functions for producing the drug. Draw the marginal revenue function for this firm.
Illustrate how you would use the rest of the information above to better assess the impact of the influx of immigrants.
Assume bread is subsidized in a small Caribbean nation with a high percentage of citizens who live in poverty. The subsidy is paid to suppliers of bread through government in amount of 50 pesos per loaf.
Most of the critics argue that America has too many elections, a surplus of elected officials, and unwieldy layers of government.
economists also the public at large normally think of skill-level having having an inverse relationship with unemployment.
What nation did you choose and why does this county interest you. What are some facts about this country.
Illustrate what are the best goals for the Fed. Should it lean toward restraint or toward expansion.
Suppose you decide to withdraw $100 in currency from your checking account. What is the effect on M1? Ignore any actions the bank might take as a result of the withdrawal.
Explain how does the increase in the after-tax price depend on the price elasticity of demand
Express how long would it take for the price level to double if inflation persisted.
Southeastern Bell stocks a certain switch connector at its central warehouse for prividing field service offices.
Assume that Nancy Pelosi declares that clay fire pits are causing global warming, and demand for fire pits shrinks substantially in the U.S.
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