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The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is:
a. economies of scale.
b. economies of scope.
c. constant marginal cost.
d. limited capacity.
Suppose a firm's inverse demand curve find the firm's optimal quantity, price also profit by using the profit also marginal profit equations.
what should it do to increase profit? If the firm is profit maximizing, is the firm in a long-run equilibrium? If not, what will happen to restore long-run equilibrium?
Calculate the after-tax nominal interest rate, then subtract off inflation to get the after-tax real interest rate for both cases.
Suppose a widget manufacturer has an infinitely substitute production function, q=3L+2K, given that MPL= 3, MPK= 2. If both the wage rate and rental rate are $10. What is the cost-minimizing combination of L and K to produce 60 units of output. How m..
At the same time some internet trades such as grocery home deliveries have continually suffered steep losses regardless of scale.
Find the equilibrium price and quantity after the shift of the demand curve.
q.assume that we have a expenditure function of the form c 220 0.9timesyp where yp is permanent disposable income.
q.lets say that you own a restaurant with 3 employees and you are trying to decide between two different production
Explain in detail the concept of excess burden (or welfare cost) and explain the factors significant in the calculation of the excess burden. What is the marginal excess burden and why is it important concept for policy evaluation?
Which of the following is the best definition of the short run?
suppose there is a sudden and permanent decline in potential GDP. Describe the behavior of prices, output, interest rates, consumption, investment, and net exports.
The first national bank received 3,000 inquiries following the latest advertisement decribing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent as in similar advertising campaign in Massachusetts Business, a regional b..
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