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The total cost curve gets steeper as output increases because of
increasing returns to the variable input.
decreasing returns to the variable input.
increases in fixed cost.
decreases in overhead costs.
Illustrate what are the optimal prices for each product if you sell these products separately. What are your firm's profits. Explain.
You are given the following information about a firm's investment decision. Calculate its user cost of capital (equivalently rental cost of capital). (Round to the nearest dollar)
If a person with utility from income is U = ln Y (where Y is income) and an initial income of $50,000 faces the risk of losing all of her income except a dollar with a likelihood of one percent, what is the most you could charge such a person for ful..
Identify the features that define the future of e-commerce. Which of these, in your opinion, are the most lasting?
A Manufacturing Company has hired an economist to evaluate its financial situation. She explains to the board of directors that the company is making zero economic profit. Should the company go out of business?
Returning to question 2, suppose the government put a tax on soda of $.50 per can to be paid by consumers. Graph the before and after tax supply and demand curve. What is the new ewuilibrium price and quantity?
The short-run supply curve of a competitive industry is derived by. Along the long-run supply curve of an increasing-cost industry that is characterized by perfect competition, all of the following can vary except. For the case of an increasing-cost ..
Outlining what firms need to do in order to bring in the most talented people (from anywhere) and make the fullest possible use of their abilities.
GDP is typically calculated by tallying all final expenditures in an economy, but it can also be calculated by adding income. Pick a product and give an example of how that product's contribution to GDP could be calculated using income.
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Who has the comparative advantage in the production of shirts? What about for computers?
demand for labor in China will drive up costs per worker there to $5 per hour. How does this alter the isocost and isoquant graph? d.Given these forecasts, where should you expand production?
Following the birth of their third child, Mary and John realized that Mary had to go back to work to help make ends meet financially. This meant, however, that they would spend less time together as a family. Sociologists would say that Mary going ba..
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