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Suppose that production of wheat is a perfectly competitive market / industry. Given the following information currently for the wheat market:Price = $5.50 per bushel
ATC = $6.00 per bushel
AVC = $5.00 per bushel
Where ATC is average total cost and AVC average variable cost.
Should these firms shut-down and sell their farms? What will happen in the long-run to these producers and thus the market / industry in terms of their profits / losses? Explain your answer by reference to specific market rules and to the adjustment process.
What is the price of a 3-year bond paying semiannual coupons with coupon rate 4% and face value 100, assuming continuous compounding?
Describe the general rules of thumb for the length and appearance of a business plan.
Using logarithmic function, transform this multiplicative (nonlinear) function into a linear function. 2. Find the Q when L= 20 and K = 6
The 95% plus-four confidence interval for the proportion of the population that prefers the pheromone branch is:
Given the current condition of the US economy, do you think US policy makers would prefer to see the $ rise in value, decline in value or stay at its current value? Discuss the advantages and disadvantages to the US economy at this time of a stronger..
Consider an economy in which the labor demand function is 40 - (W/P), the labor supply function is 40 + (W/P), the production is Y = 30 + 12L. Suppose the money supply is $333 and the velocity is 4. What is the equilibrium level of employment L* and ..
Describe the impact of the permanent normal trade relations deal on the Canadian economy with respect to our trade relations with the US and China
Why is the average viewer of TV news or the average reader of a newspaper interested in the fluctuations in prices in the stock marketplace.
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
New buses for a mass-transit agency cost $10 million and are expected to last for 10 years with a $1 million salvage value. The buses cost $500,000 to operate and maintain each year. If the system is used for 624,318 trips per year, with the average ..
Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Suppose there are two types of individuals: those with $60,000 in the bank and those with $5,000 in the ban..
q1. consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital
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