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In terms of preferences, what is the condition for the efficient distribution of goods? Explain why if all consumers face the same price for all goods, then we have efficiency (this takes a few steps of logic). Include a graph of a consumer maximizing their utility.
With reference to the theories of Baumol and Schumpeter, and the activities of one or more real world entrepreneurs during the last decade, explain how entrepreneurship can be either productive or unproductive (/destructive)
A monopoly is considering selling several units of homogeneous product as a single package. A typical consumer's demand for the product is Qd = 50-.25P, and the marginal cost of production is $120. -Determine the optimal number of units to put in a p..
What adverse effects on the domestic economy may follow from (a) a depreciation of the exchange rate and (b) an appreciation of the exchange rate.
If a competitive firm's marginal profit is positive at an output of 1000 units,
Suppose that you close down your coffee shop and sell your coffee maker for $500. If you originally bought the coffee maker for $4,000 and it lost $1,000 because of depreciation (i.e., age and use), the sunk cost of the coffee maker is:
Suppose that all of the firms in the coal mining industry were willing and able to produce and sell 5 million tons per week at a price of $3/ton last week. This week the firms are not willing and able to produce and sell that amount at a price below ..
In oligopoly, each firm is acutely aware of the production and marketing decisions of all competitors and carefully considers the potential competitive reactions in all decisions. Discuss whether firms in other market structures consider the potentia..
An electric utility company uses natural gas as fuel for a large multi-unit power plant. with all units in service, for a given hour the plant's fixed cost is $120,000 and its variable cost is $50 per megawatt demanded. What is the hourly demand in m..
Suppose RCA presses records using two inputs, labor (L) and capital (K). Their production function is Q=(1/4)KL. The price of capital is $16 and the price of labor is $36. What is RCA’s long-run total cost function? What is RCA’s long-run average cos..
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie ins..
Identify the changes in market conditions and the effect of these changes on equilibrium price and quantity for the given events. The wages for all dental assistants increase with the increase in the costs of inputs. How confident do you feel in your..
For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annually, compounded monthly?
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