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Your firm currently uses 69 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is 100 per day. Fixed costs are $2100 per day. What is total cost (TC)? What is average cost (AC)? What is variable cost (VC)? What is average variable cost (AVC)? Is the firm profitable? Should it stay in business in the short run? Should it stay in business in the long run?
Analyze the past, current, and future cost considerations of the company and, on the basis of your costs analysis, create a list of strategies to enhance the company's profit. In your analysis, include the following information about the various c..
How would income distribution and resource use change if a flat rate tax on comprehensive income were substituted for current progressive income tax in United States?
Explain the output and price effects which affect the profit-maximizing decision faced by the firm in oligopoly market. How does this differ from output and price effects in monopoly market?
Given a uniform rate of interest of 9% and a uniform life of the projects of 10 years each, calculate the NPVs of each Project. Should we choose Projects A, C, D or Projects A, B, D. Describe
What is the elasticity of demand with respect to income? Comment on and interpret your answer (i.e., the sign and magnitude of the elasticity).
Find the comparative statics for an increase in the sales tax, namely y^s/s and p^s/s , and provide an economic interpretation of them. What is the economic interpretation of an increase in the parameter a? You might want to plot the demand functi..
The demand for housing is often described as being highly cyclical and very sensitive to housing prices and interest rates. Given these characteristics describe the effect of each of the following terms of whether it would increase or decrease the..
List at least four sources of growth in the economy along with two examples of each source. Explain what it contains and why these sources are important.
At what output is AVC at minimum? If the market price of firm's output is $7 per unit, should the firm produce or shut down?
Suppose You have been employed by an unprofitable company to determine whether it should shut down its unprofitable operation.
What are the current implications of high energy costs in the information sector and what is the potential significance of using cloud computing technologies to lower energy consumption?
At the same time the unemployment rate remained at 8.3%. Use your understanding of the labor market to explain how these two things could happen at the same time.
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