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A firm has two production plants where they produce the same product. The cost function at plant #1 is
\(C_{1}(Q_{1})=10Q_{1}+.5Q_{1}\)
The cost function at plant #2 is \(C_{2}(Q_{2})=10Q_{2}+2Q_{2}^{2}\) A) If the firm wants to produce Q total units of output, what fraction of Q will be produced at plant #1? What fraction at plant #2? Show all work.B) What is the firms total cost function in terms of Q?
Explain 3 to 5 factors in the economy that will impact the demand for gasoline and one for the cost associated with manufacturing the good or service.
Suppose that the demand for money increases. Using a diagram with a money demand curve and a money supply curve, determine the effect on the interest rate.
Elucidate whether the following statements are positive or normative economic statements, and explain why you categorized them in that way.
Describe how the equilibrium in a labor market with a monoposony employer changes if a minimum wage is set at the competitive level.
The monopoly sells two units of goods over two periods. The costs are zero. Consumer A has a valuation of 15 and Consumer B has a valuation of 10. Suppose the discount rate is ?=.8. If we allow Consumer B to have a valuation of k
Show in an IS-LM and AS-AD graph the effects of an increase in government spending. Next, using the same graph, show how the economy will transition back to the natural rate of unemployment. Explain intuitively how this transition takes place.
Determining at least two websites or articles to help you answer the following questions about the petroleum industry. It is to be done is précis of the major points of the article or Web site, and to be referenced.
Suppose Gillette makes razors and blades. The marginal cost of producing blades is 1 and assume the marginal cost of producing razors is 5. Gillete has a monopoly in the razor market, but the blade market is competitive.There are two types of cons..
Illustrate what most people do not realize is that what the Fed is actually doing is changing money supply (and not interest rates directly). When money supply changes, interest rates automatically adjust to keep the money market in equilibrium.
The Xerxes Firm is composed of a marketing division and a production division. The marketing division packages and distributes a plastic product made by the production division.
When planning the process of preparing a bank reconciliation it is noted that under normal circumstances only one section of the examine may generate additional entries on the books of the account holder.
The unemployment rate is a deceptive indicator of the current and future state of the economy. How does the timing of lay off and hiring decisions made by companies describe the misleading characteristic of this indicator?
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