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In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is a positive area between the long-run industry supply curve and the long-run equilibrium price. What does this area represent?
Q = 123 - 0.5P - 0.25 Pc + .01 Y where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville. what is the profit maximizing pric..
A 12% $50,000 bond is offered for sale at $45000. If the bond interest is payable monthly and the bond matures in 20 years, what nominal and effective rates of return per year will the purchaser make on the investment
The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Rent-to-Own's required rate of return is 8%.
An industry consists of three firms with sales of $200,000, $500,000, and $400,000. a. Calculate the Herfindahl-Hirschman index (HHI). b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidlines des..
How does that rate compare with the rate at which real GDP fell during the 1990-1991 recession?
currently fans pay ave ticket price $5 and consumes $4 worth of refreshments at the game. Management thinking of raising the ticket price to $5.50. Compute the % in 1) tickets sold 2) ticket revenue 3) total revenue from admissions and refreshment..
Use the following equations for demand and supply to solve for market equilibrium price and quantity: Demand: Qd = 100 - 4P Supply: Qs = 10 + 6P
An industry consists of two firms, each of which have variable costs of $10 per unit but no fixed costs. The industry demand curve is P = 70 - Q. Solve for the Cournot equilibrium. In doing so, derive the reaction function of each firm (call Q1 an..
1. the income tax system in a country requires each citizen to pay 10 of income on earnings up to 40000 and then pay 20
If Martha finds $10,000 under her mattress and deposits it in a demand deposit, by how much may the deposit expand the total money supply Assume that the legal reserve requirement (required reserves ratio) is 20%.
What are the strengths and weaknesses of each approach? Do you think that there are other dimensions of development not mentioned in the text? If so, describe them. If not, explain why you believe that the text description of development is adequa..
Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade deficit. What is the appropriate fiscal and monetary policy mix?
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