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Carefully describe what will happen as we move from short run to a long run equilibrium in a monopolistically competitive industry if companies are making a positive profit in the short run. Your explanation should clearly state what will happen to the demand curve facing an individual firm and the reason why this happens.
Does the marginal product of labor measure how output changes as wage price changes, or is it the average product of labor divided through the quantity of capital stock and can it be negative or is it any two of the above?
During the last ten-years, sales revenue has increased from 25 million to 65 million. Estimate the company's growth rate in sales using the constant growth model with annual compounding.
Dell Computer Corporation, the world's biggest personal computer maker, is keenly aware of everything its rival PC manufacturers decide to do.
Dominant price leadership exists when one company drives others out of the market. The dominant company decides how much each of its competitors can sell.
"A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
Following are the Production Function: Q = 72X + 15X2 - X3, where Q = Output and X = Input The Marginal Product and Average Product when X = 6 are;
An industry has 20 companies and a concentration ratio of 30 percent. If you were in this industry and there was an increased demand for the product that pushed up price of the goods,
A company has a technology described through the production function, Calculate the quantity of labor demanded by the firm and cost minimizing K/L ratio.
Carry out an analysis from the standpoint of both EMV and expected utility to establish Jeremiah’s best course of action, including a consideration of his bidding strategy with regard to the auction.
The hourly wage rate is $6, hourly rentail rate for capital is $8. The production function I found to be q=10K^.5L^.5 The captital if fixed at 225 hours in the short-run.
A 3*9 FRA has an agreement rate of 4.75 percent. You believe 6M libor in 3M will be 5.125 percent. You decide to take a speculative position in a FRA with a $1,000,000 notional value
Today's Friday night, and you are just about to leave your room to attend a party. However, a copy of New York Times catches your eye.
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