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A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50? Explain your responses.
Identify the stocking rate that you would suggest to a risk averse farmer and explain why you would recommend this stocking rate.
John Taylor of Stanford University proposed the following monetary policy rule: R_t-r ¯=m ¯(π_t-π ¯ )+n ¯Y ~_t. That is, Taylor suggests that monetary policy should increase the real interest rate whenever output exceeds potential.
Due to a slow economy, business has been slow and you are losing money every month. The owners have asked you whether to continue operations or to shut down at least until the economy improves.
ac inc. has a monopoly in the market for little green houses. acs total cost function is 100000.10y2 0.10 y squareand
Based on the reading assigned for this module, and your own Internet research, what adjustments are required for China to rebalance its current account. What risks are inherent in such adjustments
Briefly explain how this will affect money supply over time and how, even without any intervention on the part of the government or the central bank, the economy would self adjust over the following few years.
patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers
What are some goods and services which produce positive externalities generally produced by the government?
discuss the market system and the need for ethics in business and distinguish it from the law and concepts of virtue
salt inc. just constructed a manufacturing plant in ghana. the construction cost 9 billion ghanaian cedi. salt intends
Consider a perfectly competitive market where market demand is given by Qd=30-P and market supply is given by Qs=2P. In this market, the government has imposed a production quota of 10.
There are 10 identical firms, each firm's marginal cost is MC(q)= 5 + 5q. The market is competitive. derive the market demand function.
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